XRP (XRP) is not new to date-based predictions. One of those dates was the 5th of Nov, and as predicted, XRP did rally, though not the levels that many had anticipated. The next date that is heavily anticipated is November 18th, and it’s linked to Temenos. But what if XRP could pump earlier than that? In a recent article titled, hedge funds brace for a November 15th Bloodbath, Zero hedge goes to great lengths to explain why hedge funds could see mass withdrawals on the 15th. According to this article, hedge funds have been underperforming, and this could lead to more investors cashing out, as they have already been cashing out. To quote the article,
“Having previously noted that September outflows – at a time of record stock prices – jumped the most in years, the October total will be a sight to behold. The industry lost 3% in October and is down 1.7% this year, according to HFR. It reflected the worst month for US stocks since 2011, with “hedge” funds once again making a mockery of their designation, and failing to hedge any of the market’s move.”
The article goes on to quote a Bloomberg article, with regards to a possible mass cash out on the 15th. The Bloomberg quote states that,
“Today, Bloomberg picks up on this risk, with reporter Saijel Kishan writing that following the second worst month of the decade for the hedge fund industry, many are bracing for an industry D-Day: Nov. 15.
That, as Kishan explains, is the deadline for investors to put managers on notice to get some – or all – of their money at year end.
Investors can cash out of most hedge funds quarterly after giving 45 days notice. Withdrawal schedules can vary, as do notice periods. Firms can also levy penalties on clients who want to bail outside of agreed schedules, while investors can cancel redemption plans if they change their minds.”
The XRP connection
You are probably wondering, what hedge funds moving money has got to do with XRP, right? Well, in an interview with tech crunch, Michael Arrington, of Arrington XRP Capital made an interesting statement about hedge funds and XRP. He stated that,
“…XRP is a fantastic currency to use for among other things hedge funds. We need to move a lot of money very quickly, we make investments all over the world, our LPs come from all over the world and using banks to move money is a pain in the a**. It takes a day or two to move money around the world, and with XRP, our very first close to $50 million, we moved that money in like 3 seconds.”
This is a pointer to the fact that hedge funds are adopting XRP as an efficient way of moving money all across the world. Considering that hedge funds move money in the billions and hundreds of millions, lots of it going through XRP at a go, could cause a spike in the price of XRP (XRP). It doesn’t matter whether that money is moving in or out of the funds. It will be an interesting date to watch though and see if it could push XRP (XRP) to at least a dollar.