XRP achieves yet another milestone with its recent approval of derivative contracts particularly designed for institutional investors on the San Francisco-based cryptocurrency exchange Coinbase.
XRP Milestone Could Spark A Bullish Run
Due to XRP’s recent milestone, Wall Street expert Linda Jones believes that the token is very bullish following the increase in interest from institutional investors toward the XRP market.
Linda Jones took to her official X (formerly Twitter) handle to express her viewpoint on XRP’s future. She noted that XRP will probably experience a bullish trend since the approval of derivative contracts enables institutional investors to trade the token with significant capital.
Linda further highlighted that institutional investors’ adoption is more likely to trigger a bullish trend for XRP than with just retail investors. According to the expert, Wall Street firms, notably hedge funds, are drawn to derivative trading because it gives them the chance to take advantage of price changes in digital assets to maximize profits.
Coinbase approving perpetual futures contracts for trading XRP means:
1) XRP is very bullish. If XRP’s price was not going to fluctuate or change a lot, no one would be interested in trading it. Futures contracts allow for maximum leverage and can lead to outsized profits (or…
— Linda P. Jones (@LindaPJones) October 18, 2023
In the post, Linda anticipates that leading investment firms could be investigating jurisdictions that are familiar with hedge funds and offshore funds, such as the Cayman Islands or Bermuda.
The introduction of institutional investors to the XRP market covers a larger connection for the digital asset’s market stability and adoption. This marks a major step for the digital asset.
It indicates a growing interest and adoption of XRP in the midst of institutional investors and an increase in investment in XRP might trigger the digital asset’s overall market dynamics since institutional investors are attracted to volatile assets like XRP.
The increased interest from institutional investors in the token may also trigger an increase in demand for the token from several types of investors including retail investors and businesses.
Linda Jones On The Ripple IPO
Linda Jones has previously commented on XRP and the potential value if Ripple were to undergo an initial public offering (IPO) and become a publicly traded company.
Jones compared Ripple going public to the valuation at which Coinbase went public and presented a possible $107 billion valuation for the company. With such a valuation, the crypto firm’s stock price would be $600. The Wall Street veteran also believes that Ripple should be considered a high-value company such as Nvidia or Apple because it has what it takes.
If Ripple were to be as highly valued as Jones posited, then there would be an obvious impact on the XRP price. Wells Fargo manager Shannon Thorp believes that as Ripple continues to capture the cross-border payments sector, its price could rise as high as $500.
Bulls hold support at $0.51 | Source: XRPUSD on Tradingview.com
Featured image from CoinMarketCap, chart from Tradingview.com