- Bitwise launches Spot XRP ETF on NYSE, trading under the rare ticker XRP with a first-month fee waiver.
- ETF expected to boost XRP demand, as creation of the fund requires buying actual XRP, attracting institutional investors.
- XRP price poised for potential rebound, testing support levels and possibly reaching $2.26 before main support at $2.03.
Bitwise has launched its spot XRP exchange-traded fund (ETF) on the New York Stock Exchange, marking a significant milestone for this rapidly growing asset, currently recognized as the third-largest cryptocurrency by market value globally.
The ETF will begin to trade using the simple ticker XRP, which is very rare and valuable, and already registered on Bloomberg’s ticker system. Additionally, Bitwise was able to register BitXRPetf.com, which makes it apparent that Bitwise is planning on launching a massive promotion campaign for the ETF offering.
The fund also comes with a 0.34% management fee, though Bitwise is waiving this for the first month for the first $500 million of assets under management. This is expected to act as a draw for initial assets and to facilitate smooth market execution during the initial period of market activities.
XRP Eyes Rally Before ETF
XRP saw a drop to $2.10 before the launch but is expected to follow a normal Wave 4 correction, according to analysts. XRP also tested its RSI support level for a possible reversal and may also reach $2.26 before moving to its main support at $2.03.
Analysts say this ETF may bring about significant changes to XRP’s supply-demand market. The reason is that for these Aps to create and support this ETF, they need to purchase actual XRP into existence. This is highly significant at a point when institutional investors’ interest is growing for payment-oriented blockchain assets.
Moreover, analyst Jake Claver points to what he terms “reverse carry trades” and how higher interest rates within Japan could result in massive capital inflows into new markets such as digital assets. A possible result of such scenarios could include XRP benefiting from increased inflows driven by institutional investors seeking blockchain infrastructure opportunities.
At the same time, the notion of BlackRock’s own ETF based on XRP being launched in 2025 also appears to be gaining momentum. In this case, competition for XRP supply is expected to further worsen.
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Bitwise ETF Sparks XRP Accumulation Trend
The Bitwise ETF could see new inflows for today, but analysts also project XRP to go sideways for now, just like what happened to BTC and ETH for their respective ETF launches. The major thing to watch is whether new inflows continue for the week, new ETFs put added buying power on XRP from November 20 to 22, and large institutions begin to accumulate XRP by December.
A steady rate of demand means this initial launch may just be the start of something big rather than simply being a flash market response. As markets continue to move into this larger correction cycle, analysts also project XRP may now have opportunities for further growth following ETF investments and growing institutional interest.
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