The cryptocurrency markets are currently experiencing significant and pivotal developments, particularly as XRP continues to draw considerable attention with its record-breaking gains and heightened institutional interest. Following an astonishing return of 297% in November 2024, XRP has skyrocketed to its highest levels since 2017, igniting a wave of optimism among analysts who are now setting ambitious price targets for the altcoin. This surge in value is not just a fleeting moment; it suggests a broader trend of growing confidence in the cryptocurrency space. In addition, WisdomTree has recently joined the expanding roster of asset managers that are filing for a spot XRP exchange-traded fund (ETF). This move is in response to the increasing demand for regulated investment products that are directly tied to XRP, indicating a shift in how institutional investors are approaching the cryptocurrency market. As interest continues to build, the landscape for XRP and similar assets is evolving rapidly, promising exciting opportunities ahead. XRP Soars in November, Achieving Record-Breaking Gains Since 2017 XRP, Ripple’s native cryptocurrency, has been the talk of the town in November 2024, registering a monumental 297% monthly return on investment (ROI), its highest since December 2017. The token's November close at $1.95 not only marks a seven-year high but also a decisive breakout above its 2021 peak, solidifying its bullish trajectory. Over the past 24 hours, XRP has surged an additional 14%, further fueling market speculation. Analysts now believe this altcoin has the potential to reach unprecedented levels. Jacob Canfield, an independent crypto trader, has set an ambitious target of $6.60 for XRP, citing Fibonacci extensions and historical performance relative to Bitcoin during previous market peaks. Highlighting Bitcoin’s current value—approximately five times its 2017 price when XRP reached its previous all-time high of $3.40—Canfield explained: “This would put the price around $6.60, exactly 2X the value of its previous high. I think this is probably the ideal FOMO target and would stop thinking double digits or higher and is very logical.” Similarly, Tony Edward, founder of the Thinking Crypto podcast, has placed XRP’s potential target between $5 and $8, while recommending a more conservative profit-taking strategy. Neel, a crypto educator, pointed out that XRP's rally is a signal of increasing retail investor participation, driven by heightened media attention and its appeal to mainstream audiences. On-Chain Data Reveals Whale and Retail Accumulation XRP’s price surge has been mirrored by robust on-chain activity. Data from analytics platform Santiment reveals that XRP wallets holding between 1 million and 10 million tokens have accumulated 679.1 million XRP—valued at $1.6 billion—over the past three weeks. Additionally, the number of non-empty XRP wallets has surpassed 5.5 million for the first time in the cryptocurrency’s eight-year history. This surge in wallet activity suggests a growing interest among both retail investors and whales, further supporting the bullish momentum. XRP’s futures market has also seen remarkable growth, with open interest (OI) reaching a new all-time high of $3.99 billion as of Dec. 2, 2024. This represents a staggering 100% increase from Nov. 28, when OI stood at $2.06 billion. The combination of rising spot accumulation, increased futures activity, and surging trading volumes paints a clear picture of the renewed interest in XRP among traders and investors alike. Ripple's ongoing legal victories and institutional partnerships have contributed to the positive sentiment surrounding XRP. With little resistance remaining on higher time frames, market experts predict a continued upward trend, particularly if XRP can maintain a close above $1.99 by the year’s end. Such a close would mark its highest yearly finish in history, further solidifying its bullish narrative. As XRP’s price and on-chain metrics continue to break records, the altcoin finds itself at a pivotal moment. Analysts remain cautiously optimistic about its trajectory, citing strong fundamentals, increasing adoption, and growing market momentum. Whether XRP can achieve the ambitious targets set by experts like Jacob Canfield and Tony Edward remains to be seen, but one thing is clear: XRP is once again at the forefront of the crypto market, captivating investors and traders worldwide. WisdomTree Files for a Spot XRP ETF, Joining Growing Industry Movement Meanwhile, WisdomTree, a prominent asset manager and one of the first companies to issue a spot Bitcoin exchange-traded fund (ETF) in the United States earlier this year, has taken another major step in the cryptocurrency space. On Dec. 2, WisdomTree filed a Form S-1 with the US Securities and Exchange Commission (SEC) to launch a spot ETF backed by XRP, Ripple's native cryptocurrency. This move positions WisdomTree as the fourth company in the United States to file for a spot XRP ETF, reflecting a burgeoning interest in XRP-based investment products. The proposed fund, named the WisdomTree XRP Fund, is designed to give investors exposure to XRP’s price performance. Shares of the fund are expected to be listed on the Cboe BZX Exchange. According to the filing, the fund will create and redeem shares using a cash-create method or in exchange for cash. WisdomTree may explore an in-kind model, which could allow for more efficient share transactions, pending additional approvals from regulatory authorities. In its filing, WisdomTree revealed that affiliates of Coinbase Global, a leading cryptocurrency exchange, will play a pivotal role in the fund's operations. Coinbase will serve as both the XRP custodian and the fund’s prime execution agent, ensuring seamless management of XRP transactions. The filing emphasized Coinbase's critical role in the US spot XRP exchange-traded product ecosystem. WisdomTree has a history of relying on Coinbase for cryptocurrency custody and execution, including its WisdomTree Bitcoin Fund (BTCW), which debuted alongside other Bitcoin ETFs on Jan. 11, 2024. WisdomTree’s filing adds to the growing competition among asset managers vying to launch the first spot XRP ETF in the United States. Three other firms—Bitwise, Canary Capital, and 21Shares—have already submitted their own filings with the SEC. Bitwise: Bitwise was the first to file for a spot XRP ETF, submitting its Form S-1 on Oct. 2. The company is no stranger to the ETF market, having debuted its Bitwise Bitcoin ETF (BITB) earlier this year. Canary Capital: Following Bitwise’s lead, Canary Capital filed for the Canary XRP ETF on Oct. 9. The firm has positioned itself as an emerging player in the cryptocurrency investment space. 21Shares: In partnership with ARK Invest, 21Shares filed its Form S-1 for the Core XRP Trust on Nov. 1. Unlike the other ETFs, this trust does not provide direct exposure to XRP but offers investors an opportunity to access the market indirectly. The flurry of XRP ETF filings comes at a pivotal time for Ripple and XRP. XRP recently reclaimed its position as the third-largest cryptocurrency by market capitalization, buoyed by its legal victory against the SEC and a series of bullish market developments. The interest in spot XRP ETFs indicates a growing demand for institutional-grade investment products tied to cryptocurrencies beyond Bitcoin. Analysts believe that a successful launch of a spot XRP ETF could further solidify XRP’s position in the market and attract a broader base of investors. Regulatory Hurdles Remain While the interest in spot XRP ETFs is mounting, the approval process remains uncertain. The SEC has historically been cautious with cryptocurrency ETFs, citing concerns over market manipulation, liquidity, and custody solutions. However, the approval of multiple spot Bitcoin ETFs earlier this year suggests a shift in the SEC’s stance, raising optimism for XRP-focused products. If approved, WisdomTree’s XRP ETF and similar offerings could serve as a significant catalyst for XRP adoption. By providing investors with a regulated and accessible way to invest in XRP, these funds have the potential to drive liquidity, increase market participation, and bolster confidence in the broader cryptocurrency ecosystem. WisdomTree’s filing for a spot XRP ETF sheds some light on the increasing institutional interest in cryptocurrencies beyond Bitcoin. With several firms now competing for SEC approval, the race to launch the first US spot XRP ETF is heating up. As regulatory developments unfold, the launch of such a product could mark another milestone for both XRP and the cryptocurrency market as a whole. Investors and industry observers will undoubtedly be watching closely as the SEC evaluates these groundbreaking proposals.
