A prominent Wall Street financial expert, Linda Jones, explains XRP’s growing bullish momentum. She recounted possible implications of Coinbase’s recently approved XRP derivative contracts on XRP price.
She highlighted the need for sustainable bullish moves from XRP holders with increasing institutional interest in the asset.
Jones Explores The Implication Of Growing Institutional Interest In XRP Trading
According to her recent post on the X platform, Jones explores the spike in institutional access to XRP. She noted that Coinbase adding perpetual futures contracts for trading XRP for non-US institutional customers means“XRP is very bullish.”
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
Notably, Coinbase has taken a more profound step in its optional services to clients. In May, the crypto exchange secured a license to provide futures contracts to non-US institutional customers. Also, it received another license after four months to include retail investors in its futures contracts.
The licenses birthed Coinbase’s recent announcement, allowing perpetual futures trading for non-US users via the Coinbase Advanced platform. The exchange selected four crypto assets, including XRP, as its starting point in the new development.
Additionally, Jones reacted to Coinbase’s secrecy about countries with approval to trade its futures contracts. Through speculation, she indicated Bermuda and the Cayman Islands as possible locations for the top investing companies.
Jones grouped Bermuda and the Cayman Islands as
the jurisdiction for hedge funds and other offshore funds.
According to Jones, the importance of futures contracts depends on their ability to withstand extreme price fluctuation amid the highly volatile crypto market. She debated that significant price trends drive investors’ interest in trading XRP as derivative contracts.
The expert’s view stems from the sentiment that investors who bet on the price action of virtual assets select those with notable volatility. Price fluctuations are the route to achieving optimal profitability in investments.
Additionally, Jones recognized the role of futures contracts in digital asset trading for investors. She said that
futures contracts allow maximum leverage and can lead to outsized profits (losses).
The Wall Street expert also considered and ranked the grade of investors participating in futures trading. She revealed that most Wall Street firms are highly interested in derivative trading, especially hedge funds.
XRP Becoming More Bullish?
Further, the Wall Street expert explained the impact of the more significant inflow from institutional funds than retail funds into the XRP market. She noted that such a trend indicates the bullish potential of Ripple despite the expected more outstanding funds from institutional investors.
Because volatility is a significant gain driver, the expert recognized that institutional investors want to join the wave for profits.
According to Jones:
This is bullish for XRP because it means the large wave of institutional money is close to coming in, and they want to trade on the volatility.
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Augustine Mcnaught