Recent analyses reveal that the 2x leveraged XRP fund has achieved greater trading volume compared to Solana 
$89 futures products. A significant portion of XRP’s trading volume occurs in markets outside the United States, which raises concerns that the lack of a futures trading market could complicate the approval process. Additionally, the increasing spot trading volume on U.S. exchanges and the successful launch of the XRP product may positively influence the likelihood of approval. The May 22 deadline for the SEC‘s response to Grayscale’s spot XRP application stands out as a pivotal moment closely monitored by the market.
SEC Decision and Market Expectations
Bloomberg analysts noted that the 2x leveraged XRP fund has captured higher trading volume than Solana futures products. Kaiko’s analysis indicates that XRP transactions predominantly originate from markets outside the U.S., suggesting that the absence of a futures trading market could pose obstacles in the approval process. These insights are supported by the following statement:
Bloomberg Analysts: The 2x leveraged XRP fund shows high trading volume compared to Solana products. XRP transactions occur largely in markets outside the U.S.; the lack of a futures market may hinder the ETF approval process. The May 22 SEC response date is deemed critical.
According to Kaiko experts, the increase in XRP’s spot trading could enhance its chances of approval despite the lack of a futures trading market. Observations in the Deribit options market show that investors are seeking hedging strategies due to ongoing macroeconomic uncertainties.
The SEC is required to respond to Grayscale’s spot XRP application by May 22. In this context, positive price movements in the market and the successful launch of the 2x leveraged XRP fund could contribute favorably to the XRP approval process. The following statement summarizes this situation:
Kaiko: Emerging market dynamics and last week’s 2x XRP product launch have positioned XRP favorably compared to other assets.
Reports indicate that XRP’s current trading price is approximately $2.14. This price reflects a 12.5% increase over the past week, showcasing remarkable performance despite economic uncertainties. Investors are closely monitoring these developments.
Market commentators suggest that the leveraged product, supported by European ETP yields and swap agreements, carries lower risk than the spot product. This perspective is articulated in the following statement:
Kaiko: The reduction of spot product risk, due to European ETP yields and swap agreements, weakens approval arguments.
In light of the provided information, developments related to the XRP product and market dynamics are seen as significant indicators for the forthcoming approval process. It may be advisable for investors to keep a close watch on the SEC’s announcements, considering the increasing spot trading volume and enhanced price performance.
