Key Takeaways:
XRP has been included in the Nasdaq Crypto US Settlement Price Index.
Current regulations prevent Hashdex’s ETF from holding XRP, although a pending decision may change this situation.
The price of XRP is experiencing short-term bearish pressure, with critical resistance marked at $2.30 and potential downside toward $2.14.
XRP’s addition to the Nasdaq Crypto US Settlement Price Index is a significant development that could enhance institutional interest and influence liquidity in vital cryptocurrency markets.
On June 6, asset management firm Hashdex filed updates regarding its Nasdaq Crypto Index US ETF with the U.S. Securities and Exchange Commission (SEC), detailing modifications to its benchmark portfolio.
This filing reveals that Nasdaq expanded the index to include XRP on June 2, alongside Cardano (ADA), Solana (SOL), and Stellar Lumens (XLM), moving beyond its previous focus solely on Bitcoin (BTC) and Ethereum (ETH).
Hashdex’s NCIQ ETF Tracks This Index
The Hashdex ETF, known by the ticker NCIQ, aims to track this index, offering market capitalization-weighted exposure to BTC and ETH within a compliant structure.
However, existing SEC regulations restrict the ETF from holding any digital assets apart from BTC and ETH, a limitation that could lead to tracking risk given the recent inclusion of XRP and others in the index.
“Under current regulatory restrictions, the Trust is only permitted to hold bitcoin and ether, and is not permitted to hold the new index constituents,” the filing clarifies.
It further notes that “the risk of potential tracking error is increased.”
In a separate development, Nasdaq has proposed a rule change in March aimed at enabling the ETF to track the broader Nasdaq Crypto Index (NCI), which includes XRP, SOL, ADA, XLM, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI).
XRP’s official addition to the NCI occurred on June 3, 2024.
Should the SEC approve Nasdaq’s proposed rule change, Hashdex’s ETF would be authorized to incorporate all NCI constituents, potentially expanding XRP’s appeal to institutional investors.
A decision from the SEC is anticipated by November 2.
Bears Pressure XRP Despite Nasdaq Index Inclusion
Currently, XRP is trading around $2.22 following a tumultuous weekend, with indicators suggesting bearish momentum in the short term.
The 2-hour chart illustrates that XRP encountered significant resistance at approximately $2.30, unable to maintain upward movement, and retreated to the lower Bollinger Band at $2.14.
With the RSI standing at 51.52, it indicates a neutral but slightly overbought state following recent price increases. Meanwhile, the MACD shows little movement, signifying uncertainty among traders.
The 30-minute chart reveals a stronger downward trend for XRP, with the RSI at 34.32, nearing oversold levels, and the MACD trending negatively, which reinforces the near-term bearish outlook.
XRP has had difficulty remaining above the $2.25 support level, indicating that sellers are still in control of the market.
The 1-minute chart corroborates this short-term weakness, as the RSI drops to 32.74 and the MACD remains in negative territory. Buyers have not managed to create sustained volume, with any recent recoveries being quickly met with selling pressure.
Even with XRP’s inclusion in the Nasdaq Crypto US Settlement Price Index, institutional capital flows have not significantly influenced its price. Without a regain of $2.30 backed by robust volume, a further decline toward $2.14 appears probable.
Market participants are advised to keep an eye on broader sentiment and upcoming SEC rulings that may impact institutional access to products related to XRP.
The post Nasdaq Adds XRP to Settlement Price Index — How Will XRP Price React? appeared first on Finance Newso.
