The XRP market is heating up as Wall Street financial funds intensify their approach to altcoins through the new leveraged ETF proposal.
This event marks a step forward for institutional capital, expanding investments from Bitcoin and Ethereum into XRP with strategies to increase profits and stable income, while also signaling positive trends from the cryptocurrency legal environment in the US.
MAIN CONTENT
The Defiance Leveraged Long + Income XRP ETF proposal launched allows access to XRP with a leverage ratio of 150-200%.
The new product supports institutional investment more easily, boosting liquidity and application of XRP.
US legal policy is expanding, facilitating cryptocurrency ETFs and the new version of finance.
What is A Bold New XRP ETF Proposal?
The Tidal Trust II proposal with the Defiance Leveraged Long + Income XRP ETF aims to provide investors with a leverage ratio from 150 to 200% on XRP's daily price fluctuations, along with an income strategy based on options for long-term growth and stable income.
This product represents a new advancement for Wall Street-backed cryptocurrency funds as they expand their investments into altcoins like XRP and Solana (SOL), clearly differing from their previous focus solely on Bitcoin or Ethereum.
The simultaneous combination of high leverage and the options income strategy is expected to attract both investors pursuing growth profits and those interested in real cash flow.
Why is this product important for investors?
With large institutions like pension funds or insurance, the leveraged XRP ETF helps access this cryptocurrency more simply and safely through a managed financial product, rather than trading directly on crypto exchanges.
The product promotes increased liquidity for the XRP market, potentially enhancing widespread acceptance. For example, the 2x leveraged XRP ETF approved by NYSE Arca successfully raised over $400 million in assets in August this year, demonstrating strong demand for leveraged XRP products.
This reflects the growing interest from traditional financial institutions wanting to diversify their portfolios into altcoins with professional investment tools.
How does Bill Morgan evaluate this trend?
Cryptocurrency lawyer Bill Morgan emphasizes that institutional funds like Tidal Trust II are intensifying the leveraged XRP strategy, but warns the community to focus more on the project's fundamentals, such as XRP needing to surpass Cardano with a market capitalization of over $13 billion to achieve a real breakthrough.
"The cryptocurrency community needs to seriously monitor competition regarding capitalization and fundamental value, not just chase after leveraged products or ETFs."
Bill Morgan, Cryptocurrency Lawyer, 2024
This view suggests that while new financial products create attractive leverage, the underlying development and market share factors still determine XRP's long-term success in the market.
How does the legal policy in the US affect XRP?
Following the positive outcome in the Ripple vs. SEC lawsuit, along with the SEC lifting the 5-year fundraising limit for Ripple, XRP benefits from a more favorable legal context. SEC Chairman Paul Atkins recently stated that very few tokens should be considered securities, while launching the Crypto Project to update securities laws for the blockchain market.
Although decisions on the spot XRP ETF from some entities are still postponed until October, ETF analyst Nate Geraci predicts there may be final approvals at that time, opening up development opportunities for XRP ETF products.
"Clearly, we are witnessing a transformation in regulation, enabling crypto ETF products to thrive more in the US."
Nate Geraci, ETF Analyst, 2024
These regulatory adjustments help establish a transparent and safe environment, attracting more institutional capital into cryptocurrencies like XRP.
What notable leveraged XRP ETF products are currently on the market?
ETF Name Leverage Ratio Income Strategy Assets Under Management Approval Date Defiance Leveraged Long + Income XRP ETF 150-200% Income options Under proposal $400 million (August 2024) 2024 Teucrium 2x Long Daily XRP ETF 2x None $400 million (August 2024) 2024
Frequently Asked Questions
What is the leveraged XRP ETF?
This is a financial product that allows investors to access XRP with a high leverage ratio, amplifying profits or losses according to XRP's daily price fluctuations.
Does the XRP ETF help institutional investors more?
Yes, ETFs facilitate funds and institutions to access XRP more easily, safely, and legally compared to directly buying tokens on cryptocurrency exchanges.
How does the legal policy affect the XRP ETF?
US regulations are gradually becoming friendlier, with the removal of fundraising limits and a move towards new securities laws, making it easier for the XRP ETF to be approved and developed.
Can XRP surpass Cardano in the market?
This is a significant capitalization challenge that XRP needs to achieve for long-term progress and to increase its competitiveness in the cryptocurrency market.
When will the XRP spot ETF be approved?
Important decisions are expected in October 2024, according to ETF analyst Nate Geraci.
Source: https://tintucbitcoin.com/tidal-trust-nop-xrp-etf-don-bay/
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