Cryptocurrency

XRP Makes Grand and Influential Return. Here’s the Significance

XRP holders received positive news Thursday after Coin Metrics, a leading provider of crypto market data and analysis, announced the cryptocurrency’s reinstatement in its influential CMBI 10 Index. This decision comes after a comprehensive review to ensure XRP meets the index’s established investability criteria.

XRP’s Return to the CMBI 10 Index

The CMBI 10 Index is a valuable tool for investors seeking to understand the performance of a diversified basket of large-cap cryptocurrencies. The index is weighted by market capitalization and designed to reflect the potential returns of an investment spread across the top 10 cryptocurrencies, with XRP being one of them.

Coin Metrics incorporates price data from reputable global exchanges that adhere to its selection criteria when constructing the CMBI 10.

Read Also: XRP Lawsuit: Deaton Calls For SEC Chair Gary Gensler’s Removal. Here’s Why

Reason for Previous Removal and Legal Battle

In 2021, concerns regarding XRP’s investability led to its removal from the CMBI 10 Index. This decision stemmed from the ongoing lawsuit filed by the SEC against Ripple Labs. The lawsuit cast a shadow over XRP’s regulatory standing, prompting several major US exchanges, including Bitstamp, Coinbase, Binance.US, and Bittrex, to suspend XRP trading.

Coin Metrics highlighted that these exchange delistings significantly limited the accessibility of XRP for US investors, thereby impacting the overall investability of the cryptocurrency within the context of the CMBI multi-asset products.

Shifting Regulatory Landscape and Relisting Decisions

A significant turning point came in July 2023 when a court ruling determined that XRP sales conducted by Ripple did not constitute securities offerings. This legal victory paved the way for US exchanges to relist XRP, and Coinbase resumed trading in the following months.

However, Coin Metrics’ decision to reinstate XRP in the CMBI 10 Index comes ten months after the lawsuit victory, despite the resumption of XRP trading on US platforms. This delay can be compared to the actions of Grayscale Investments, a prominent digital asset manager.

Grayscale had initially delisted XRP from its GDLC product following the initial wave of exchange delistings in the US. However, the leading crypto asset manager acted more swiftly, relisting XRP in its product suite in January 2024.

Read Also: Return of XRP Digital Large Fund: Next Grayscale Likely Grand Move after Victory Against SEC

Positive Developments for XRP

The reinstatement of XRP in the CMBI 10 Index coincides with another positive development for the cryptocurrency. Earlier this week, Coinbase announced that XRP trading is now available to its customers based in New York. This follows a period of stricter regulations for cryptocurrency businesses in the state.

These developments suggest a potentially improving regulatory environment for XRP, which is a positive development for investors. The inclusion may also enhance XRP’s visibility and credibility within the broader cryptocurrency market.


Follow us on Twitter, Facebook, Telegram, and Google News

Solomon Odunayo

Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

Recent Posts

Top Exchange Announces SHIB Giveaway. Here’s How to Qualify

In a strategic move to expand its presence in the French cryptocurrency market, Cayman Islands-based…

1 hour ago

Invest Wisely: Best Crypto to Buy Now for Maximum Returns

The crypto market offers a golden chance right now. Major coins show strong recovery signals…

1 hour ago

Top Analyst Shows Unique Way for XRP to Hit $33

A recent analysis by prominent cryptocurrency analyst EGRAG CRYPTO (@egragcrypto) shed light on the potential…

2 hours ago

Four Lawmakers Expose Gary Gensler’s SEC Hypocrisy About Ethereum (ETH)

Fox Business journalist Eleanor Terrett reported on November 15, 2024, that a group of Republican…

3 hours ago

Bitcoin to $200000, Ethereum to $10000, Says Standard Chartered: How This Could Trigger 100x Move For a Rival Token

Standard Chartered has made an interesting prediction in line with the most recent wave of…

3 hours ago

Experts Unveil the Cryptos Poised to Make $500 Grow Into $50K in the Next Bullish Market Phase!

With the crypto market poised for its next significant upswing, experts are highlighting digital assets…

4 hours ago