XRP Set for Boost with DRs and Potential ETF Approval

XRP, the cryptocurrency that has been battered by recent power outages and liquidation drives, is set to receive a boost with the introduction of XRP depository receipts (DRs) and the potential approval of XRP exchange-traded funds (ETFs) in the US.

On February 7th, Fox Business journalist Eleanor Terret reported that investors will soon be able to buy XRP DRs through Receipt Depo and DWP advisors. These DRs represent ownership of the underlying XRP without investors having to buy the asset directly via a crypto exchange, similar to the benefits of an ETF.

In another significant development, the Chicago Board Options Exchange (CBOE) submitted an application to the US Securities and Exchange Commission (SEC) on February 6th, seeking approval for XRP ETFs on platforms like WisdomTree, Canary Funds, 21Shares, and Bitwise. If approved, these ETFs could make trading XRP easier and more flexible.

However, industry experts have raised concerns about the disconnect between long-term investors and retail investors in the crypto market. The CIO of Bitwise noted that retail sentiment is currently at its lowest point in years, while professional investors remain extraordinarily bullish. This disconnect could pose challenges for XRP's growth in the coming year, despite the positive developments.

As the crypto market continues to evolve, investors should stay informed about these developments and the potential impact they may have on XRP's trading landscape. While the introduction of XRP DRs and ETFs could make trading the token more accessible and flexible, the disconnect between retail and professional investors may present obstacles to long-term growth.