Coin Edition -
- WrathofKahneman foresees a volatile crypto market in 2024 due to the upcoming ETF launch.
- The XRP enthusiast asserts that an XRP ETF launch cannot be imagined before the end of its legal struggles.
- The analyst adds that the market will view the arbitrage between the ETF and its underlying asset.
In a New Year post, Ripple enthusiast WrathofKahneman shared insights on the inherent volatility in 2024 resulting from the upcoming Bitcoin ETF launch. While reports suggest a potential XRP ETF launch, WrathofKahneman asserted that an XRP ETF couldn’t be even imagined until the protracted legal struggle ends.
Crypto ETFs in 2024 mean volatility. It's not just the influx of institutional funds, it's the arbitrage between the ETF & the underlying asset. And not many co's house both ETF & Crypto under one roof, exacerbating arbitrage opp's. Can't imagine #XRP ETFs until case is over.— WrathofKahneman (@WKahneman) December 31, 2023
Analysts remain bullish about the impact of the Bitcoin ETF launch on various cryptocurrencies. While the largest cryptocurrency is predicted to hit $130K by the end of 2025, altcoins like Shiba Inu (SHIB) and PEPE are also set for a potential bull run, according to analysts.
However, WrathofKahneman posited that the imminent ETF launch would trigger a volatile crypto market. Commenting that the ETF and its underlying asset may not be opted by the same company, he cited,
“Crypto ETFs in 2024 mean volatility. It’s not just the influx of institutional funds, it’s the arbitrage between the ETF & the underlying asset. And not many co’s house both ETF & Crypto under one roof, exacerbating arbitrage opp’s.”
While there are anticipations that the ETFs are more likely to bring a significant surge in market cap, the unpredicted nature of the crypto market does not guarantee a less volatile market, as per WrathofKahneman. As per his assumptions, crypto whales or large crypto holders are the ones who acquire more power following the ETF launch.
Recent reports indicated that the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have reassessed their crypto policies, expressing concerns regarding Spot ETFs. The regulatory bodies’ positive sign drew the attention of XRP enthusiasts like Yassin Mobarak and Luo Boren to the development of an XRP ETF.
In addition, Grayscale Investments’ recent sponsored display of XRP prices, along with Bitcoin and Ether, reignited speculations on an XRP ETF launch. Nonetheless, WrathofKahneman dismissed the anticipations, stating, “Can’t imagine XRP ETFs until case is over.”
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