Gemini’s cryptic tweets on Monday have fueled widespread excitement in the crypto community, hinting at a major XRP-related development.
Notably, the exchange, known for its cautious approach and compliance with regulatory standards, sent out three consecutive tweets; “Don’t forget about xrp,” followed by “xcited about xrp,” and finally, “xrriving shortly.”
Adding an element of mystery to the announcement, Gemini later posed a riddle to its 483,000 followers: “Can you solve this riddle? In the land of giants, I’m swift and small, when I run I don’t stall. Across borders, I freely roam, in markets near and far from home. What am I?” The community eagerly engaged in solving the puzzle, speculating on the possible implications of the message.
After 24 hours of anticipation, the exchange provided the answer to the riddle, revealing, “Riddle answer: XRP perpetual contracts. Coming soon to Gemini.”
Notably, this announcement marks a historic moment for the cryptocurrency, as Gemini Derivatives introduces XRP perpetual contracts, enabling users to leverage crypto assets, manage risk, and explore directional exposure within a secure platform. While perpetual contracts are already live, futures and options trading are expected to follow. Notably, Gemini relisted XRP on August 30, 2023, after a period of regulatory uncertainty surrounding the digital asset.
Spot XRP ETF?
Meanwhile, beyond Tuesday’s announcement, Gemini’s recent teasers have led many in the crypto community to wonder if this could be a prelude to the introduction of a spot XRP Exchange Traded Fund (ETF).
Blockchain analyst Crypto Eri linked Gemini’s recent XRP-related activities to its role as a custodian for VanEck’s newly launched spot Bitcoin ETF and its recent approval as a Digital Asset Service Provider (DASP) in France. Eri further speculated on the potential development of a new European joint venture for a spot XRP ETF.
These announcements follow the recent approval of several spot Bitcoin ETFs by the Securities and Exchange Commission (SEC), reigniting hopes for the approval of other crypto assets, including Ethereum (ETH) and XRP.
Notably, during the recent Davos conference, Ripple CEO Brad Garlinghouse expressed optimism for more crypto spot ETFs in 2024, highlighting SEC Chair Gary Gensler’s role as a potential obstacle to crypto regulations. In a tweet, Garlinghouse also expressed high hopes for the future, proclaiming, “2024 is going to be big,” underscoring why investors should be bullish on the Ripple ecosystem this year.
That said, given last year’s ruling that dismissed XRP as a security, some experts believe that XRP could receive an early nod for a spot ETF, most likely after April when the court finally settles the three-year-old lawsuit. Despite a modest 20% increase over the past year, a spot XRP ETF approval is likely to positively impact XRP prices in the long term.