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XRP, the digital asset associated with Ripple, has garnered significant attention lately. On-chain analytics platform Santiment reports a surge in optimistic sentiment towards XRP, parallel to Bitcoin’s historic moment following the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs (exchange-traded funds).
This optimism extends to the entire crypto market, particularly major cryptocurrencies like XRP and Ethereum.
The Promise of XRP ETFs
The sentiment towards XRP has reached “extremely optimistic” levels, according to blockchain analytics firm Santiment. The recent court ruling declaring XRP not a security has rekindled discussions and speculation about the potential approval of an XRP ETF.
This speculation gained momentum after BlackRock CEO Larry Fink said, “I can’t talk about that,” when asked about an XRP ETF. Meanwhile, Valkyrie Funds co-founder Steve McClurg affirmed that the launch of a Ripple ETF would not surprise him.
Read more: How To Buy XRP and Everything You Need To Know
Crypto influencer Lark Davis also echoed these sentiments, suggesting that an XRP ETF might be on the horizon.
“Ethereum spot ETFs coming in May… [Then,] probably an XRP ETF, as it is also not a security. 2024 has some massive catalysts coming! Get ready,” Davis said.
Interestingly, the XRP’s ecosystem also reflects its growing prominence. The XRP Ledger (XRPL) recently surpassed 5 million accounts, highlighting robust engagement and diverse functionalities within the network.
XRPL Services data reveals an active community, with only 1,429 accounts holding zero XRP. Excluding wrapped tokens and centralized exchange holdings, a significant amount of XRP tokens are stored on decentralized platforms, underscoring the asset’s expanding reach and utility.
Skepticism Toward Cryptos
Despite this optimism, seasoned financial journalist Charles Gasparino pointed out potential risks. Engaging in a sharp-tongued exchange with XRP advocates, Gasparino’s skepticism towards the asset, particularly in the context of ETF speculation, serves as a cautionary note.
“Something to keep in mind about my question to Larry Fink about starting an XRP ETF and his non-comital answer; [Fink] barely knows that XRP exists as a cryptocurrency. He’s just a little more fluent in ETH’s status in the crypto ecosystem,” Gasparino explained.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
His comments regarding Larry Fink’s ambiguous statement on a potential XRP ETF suggest that the financial market may not fully comprehend or be ready to embrace cryptocurrencies like XRP. Gasparino and Fink’s stance reflects a broader skepticism in the financial sector towards more obscure digital currencies.
This ongoing tussle between optimism and caution encapsulates the current state of XRP. On the one hand, the crypto community is excited about its potential, bolstered by significant milestones and optimistic market sentiments. While on the other hand, financial experts urge caution, pointing to the complexity and nascent nature of the cryptocurrency market.
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