The Ripple community is the group of cryptocurrency investors that has waited the longest for a price surge. After dreaming for the past eight years, they found new hope with the arrival of the Trump 2.0 era. This optimism has led XRP to outperform many altcoins, with its price significantly rising by 12.5% at the time of writing.
Update on XRP Token ETF Application
Today, 21Shares updated its application documents, raising the chances of Polymarket being approved in 2025 to 81%. This indicates that investors are increasingly confident about the potential approval. Following the 60-day pause in the Binance case, SEC officials have begun discussions with cryptocurrency companies to gather insights on the regulatory measures to be taken.
One of the focuses of the meeting was to end unnecessary fraud-related cryptocurrency lawsuits, with discussions also focusing on finalizing appeals. The details shared in today's meeting have sparked excitement among investors regarding these important topics.
Features of Ripple (XRP)
Investors in XRP have various reasons for holding the asset, initially driven by excitement over potential partnerships with banks. More than 70 institutional agreements have been signed, positioning the XRP ledger as a viable solution for banks. Collaborations with giants like MoneyGram have established a solid investor base.
Let's examine some important technical details highlighted by 21Shares in the ETF documents that you may be hearing about for the first time.
If the ETF is approved, custody services will be provided by Coinbase Custody Trust Company. While CME's futures listing supports ETH and BTC, it remains to be seen how 21Shares and others will address the lack of XRP listings. Despite XRP not being listed on CME futures, potential ETF issuers believe regulatory measures can ensure market safety.
Risks Associated with XRP
I clearly remember when the BTC ETF application was submitted, economists expressed skepticism citing the 'hard fork' risk. However, BlackRock pushed the BTC price above $100,000, while many still questioned its viability. The situation is similarly complex for XRP, with risks including:
Volatility
Trading may become difficult in the absence of sufficient liquidity.
Regulatory risks; future governments may initiate new lawsuits.
Bankruptcy risk; custody services or ETF sponsors may fail, jeopardizing investor assets.
There is a risk of negative premiums, although this is unlikely to occur if demand is sufficient.
If banks prefer their own closed-loop blockchain models, XRP may become obsolete.
Despite the possibility of undiscovered serious vulnerabilities, there is still a risk of a 51% attack.
The development of XRP may introduce code vulnerabilities.
Macroeconomic factors can cause significant price fluctuations.
Whales can manipulate the market.
If indifference towards ETH is reflected in XRP, interest in the ETF may wane.
