On Thursday, Wall Street expert Linda Jones expressed a positive outlook for XRP on X, formerly Twitter, attributing the bullish sentiment to an influx of institutional money via derivative contracts on Coinbase (NASDAQ:COIN). The cryptocurrency exchange platform recently included XRP in the initial four assets for its perpetual futures trading, offered on its Advanced platform for international clients.
The appeal of these futures contracts lies in their capacity to handle extreme price fluctuations, offering maximum leverage that could lead to substantial profits or losses. This volatility is particularly attractive to Wall Street firms and hedge funds, as they often seek high-risk, high-reward opportunities.
In May, Coinbase obtained regulatory approval to offer futures contracts to non-US institutional investors. This offering was later extended to retail investors, further broadening the potential pool of participants in the cryptocurrency market.
However, Jones criticized Coinbase's lack of transparency concerning the countries authorized for futures trading. She speculated that top firms participating in these trades might be located in offshore financial centers such as Bermuda or the Cayman Islands. Despite the criticism, Jones emphasized that the increased institutional access to XRP through futures contracts on Coinbase is a significant bullish indicator for the digital asset.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.