Hong Kong’s List of Approved Cryptos Misses Out Ripple’s XRP- What Happens Next?

It was a shocking day for the crypto market. Hong Kong released a list of authorized cryptos. Shockingly, the least does not have XRP on it.  

What’s more alarming is that the omission has severely affected the price point of XRP in the global market. As an immediate reaction, XRP’s price fell by $2.4.  

More pestering issues  

The short-term outcome of this omission can be managed. But it raises questions regarding the future of the most popular cryptocurrency assets in the world. It also questions whether there are any transparent criteria in the global financial system for digital assets to operate.  

A following price crash and its effect on ETF  

The cryptocurrency market is far from stable, on the whole. This XRP event is a reflection of the same. The price of the token fell more than 15% after the decision of the Hong Kong government to exclude it from their eligible digital assets list.  

But why did Hong Kong show a lack of interest? There are mainly two reasons. Global crypto investors are constantly guessing how regulatory moves will affect their portfolios. On that note, XRP is still on the path of evolution and development. Hence volatility and flexibility come with it by default. It dissipated the interest of investors. At the same time, institutional investors did not think it would be of investing in.  

The EPF upgrade coming in  

We have a new ETF upgrade for XRP. It is a credible milestone for the crypto firm. It also shows regulatory faith in the token chain.  

However, it is not clear how much the ETF progress would help XRP. The present regulatory environment and the legal issues faced by Ripple are daunting. Therefore, there is hope but it is limited.  

The biggest silver lining is that the ETF is already authorized. It will hence bring in a stream of new investments. Once those come in, the token’s price value will stabilize. After that, we can expect the long-term sustainability of this financial asset.