XRP Embarks on a High-Stakes Journey with Hidden Demand and Spot ETF Hope

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XRP stands out in the cryptocurrency market with rapid cross-border payments, yet its price remains below expectations despite handling billions on the XRP Ledger. Experts attribute this discrepancy to over-the-counter (OTC) transactions occurring out of public view. Recent actions by Ripple and a potential ETF approval could reveal unprecedented demand for XRP.

XRP’s Hidden Demand and OTC Transactions

Institutional investors typically acquire XRP through OTC channels instead of exchanges. This method prevents purchase prices from affecting the market and creates a misleading supply-demand picture. Consequently, while transaction volumes surge, XRP’s price stagnates as these volumes remain unseen. Teucrium’s CEO described XRP as a “financial rail operating behind the scenes.”

However, this scenario might soon see a shift. Last month, Ripple acquired Hidden Road, a prime broker managing over $3 trillion annually. If even a fraction of this transaction volume shifts to the public XRP Ledger, an abrupt price surge could occur. The market could finally recognize the coin’s real application as demand previously concealed by OTC trades surfaces.

Spot ETF Decision in the Spotlight

The greatest anticipation for XRP is the potential approval of a spot ETF, with an 85% chance of occurring this year. Such a fund would facilitate direct access to XRP for retirement funds and major asset management firms. Analysts believe the ETF could bridge the gap between XRP’s utility and its market price, referring to it as a “speculation bridge.”

Furthermore, Ripple’s involvement with central bank digital currency (CBDC) projects and new financial partnerships are enhancing XRP’s visibility. Versan Aljarrah, of Black Swan Capitalist, argues that major institutions have already determined XRP’s true value behind closed doors, with its transaction price hovering around “pre-IPO” levels. Such contrasting views within the sector make the altcoin‘s future price path more intriguing.

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