XRP News Today: Institutional Bet on XRP ETFs Signals a $5B Liquidity Trigger

Institutions are quietly accumulating XRP ahead of potential regulatory milestones that could reshape the cryptocurrency’s market dynamics. With the U.S. Securities and Exchange Commission (SEC) nearing a decision on several spot XRP ETF applications, analysts and market observers are forecasting significant inflows into the asset class if approvals materialize. As of the latest data, the probability of an XRP ETF being approved has climbed to 87% on Polymarket, a sharp increase from earlier estimates. JPMorgan analysts previously projected inflows of up to $8 billion in the first year of XRP ETF trading, while Canary Capital CEO Steve McClurg raised expectations to as high as $5 billion in the first month alone. These figures underscore the growing institutional interest in XRP and highlight the potential for a substantial liquidity boost once regulatory barriers are cleared.

The number of XRP ETF applications under consideration by the SEC has grown significantly, with 15 such proposals currently on file. This represents the highest number among all altcoin ETFs, reinforcing XRP's position as a top contender in the race for regulatory recognition. Nate Geraci, co-founder of the ETF Institute and President of the ETF Store, emphasized that investor demand for XRP and other altcoins has been historically underestimated, citing the explosive inflows seen with Bitcoin and Ethereum ETFs as a precedent. Geraci’s analysis suggests that the market may be in for a similar surge if the XRP ETFs are greenlit. Additionally, the recent updates to half of the pending XRP ETF applications—described as a “good sign” by both Geraci and Bloomberg Intelligence analyst James Seyffart—indicate growing confidence in the regulatory process.

Recent price movements in XRP reflect the anticipation of this potential approval. On Monday, XRP traded at $2.81, down nearly 1% in the previous 24 hours, but still within a broader 23% decline from its July 18 all-time high. This downward trend has been attributed to heavy profit-taking by large holders, who sold approximately $6 billion worth of XRP over a three-week period. However, data from Santiment suggests a reversal in whale activity, with significant accumulation of 350 million XRP coins valued at around $984 million in the last two weeks. This pattern points to a possible bottoming-out phase in XRP’s price cycle, potentially setting the stage for a rebound once institutional demand is unleashed.

The approval of XRP ETFs could also have broader implications for the use of the asset in cross-border payments and institutional applications. Ripple has made several strategic partnerships and acquisitions in 2025, positioning XRP as a viable solution for fast, low-cost international transactions. Its On-Demand Liquidity (ODL) service, which leverages XRP to facilitate cross-border payments in seconds, has already been adopted by financial institutions in several regions. If XRP gains mainstream acceptance through ETFs, it could further solidify the token’s role in global financial infrastructure, particularly in markets where traditional systems are slow or costly.

Monex Group, a major player in the crypto space, has been actively expanding its institutional footprint through its 3iQ subsidiary. The firm recently increased its ownership in 3iQ Digital Holdings to 97.8%, signaling a strategic push into the growing institutional crypto asset management sector. 3iQ, a key part of Monex’s global digital asset strategy, has already launched innovative products like the first Solana Staking ETF and an XRP ETF in North America. The firm’s assets under management have grown by 39% year-on-year to CAD 1.51 billion, reflecting strong demand from institutional investors for structured crypto exposure. Monex also plans to issue yen-pegged stablecoins backed by Japanese government bonds to facilitate cross-border and corporate payments, further expanding its role in the evolving crypto ecosystem.

As the regulatory landscape continues to evolve, the potential approval of XRP ETFs represents a critical juncture for both the asset and the broader cryptocurrency market. If institutional demand materializes as predicted, XRP could see a dramatic shift in its market profile, moving from a niche digital asset to a staple of regulated investment portfolios. This transition could drive increased adoption, liquidity, and price stability, ultimately reshaping the role of XRP in the global financial system.

Source: [1] XRP ETF approval seen to unlock $5bn bonanza, but 'people (https://finance.yahoo.com/news/xrp-etf-approval-seen-unlock-121250497.html) [2] How High Will XRP's Price Go if All Ripple ETFs Are (https://cryptopotato.com/how-high-will-xrps-price-go-if-all-ripple-etfs-are-approved-in-2025-3-ais-give-big-predictions/) [3] Monex boosts its stake in Canadian digital asset manager 3iQ (https://crypto.news/monex-boosts-its-stake-in-canadian-digital-asset-manager-3iq/) [4] Monex acquires additional shares in 3iQ Digital Holdings (https://fxnewsgroup.com/forex-news/retail-forex/monex-acquires-additional-shares-in-3iq-digital-holdings/) [5] Fast track approval of XRP etfs. (https://www.reddit.com/r/XRP/comments/1n71brv/fast_track_approval_of_xrp_etfs/) [6] Ripple ETFs: Why They Matter and How They Could (https://www.onesafe.io/blog/ripple-etfs-impact-on-xrp-future)