XRP News Today: Whales and ETFs Line Up to Push XRP Toward $5

The U.S. Securities and Exchange Commission (SEC) is nearing a critical decision on several XRP-based exchange-traded fund (ETF) applications, with analysts increasingly optimistic about approval. As the October deadline looms, the probability of an XRP ETF gaining regulatory clearance has risen sharply. According to the prediction market Polymarket, the likelihood of approval now stands at 87%, up 16 percentage points in the last 24 hours. Earlier in August, Bloomberg analysts estimated a 95% chance of approval. This mounting confidence is further supported by recent updates to half of the XRP ETF applications, a move viewed as a positive development by industry experts such as Nate Geraci of the ETF Store and James Seyffart of Bloomberg Intelligence.

The potential economic impact of XRP ETFs is significant. Analysts anticipate strong investor demand, with Nate Geraci and Steve McClurg of Canary Capital forecasting inflows of up to $5 billion within the first month of trading. These estimates reflect a broader trend of growing interest in XRP, evidenced by the performance of existing exchange-traded products. Teucrium, an ETF issuer known primarily for agricultural products, launched a leveraged XRP ETF in April, which has attracted $353 million in net assets—surpassing the combined total of the issuer’s traditional agro-based funds. This performance suggests that a spot XRP ETF could face robust demand once approved, particularly as the broader crypto market continues to mature.

The regulatory environment is also shifting in favor of XRP ETFs. XRP is expected to meet the SEC’s new listing criteria on September 20, which would allow it to be traded on a designated contract market (DCM) for six months post-listing. Meeting this requirement could fast-track the approval process and increase the likelihood of the SEC granting approval in October. The agency has historically delayed decisions on ETFs to avoid giving any one fund an advantage, with the precedent set by the simultaneous approval of Bitcoin and Ethereum ETFs. If the SEC follows a similar approach for XRP, it would indicate a broader acceptance of altcoin ETFs and reinforce XRP’s status as a legitimate asset class.

From a technical perspective, XRP has shown signs of recovery, rising 2.5% on Tuesday to $2.82 after a recent dip to a weekly low of $2.6958. The token remains down 23% from its July high but has formed a falling wedge pattern, which analysts view as a potential precursor to a strong breakout. XRP has also reached a key support level at the 100-day moving average, suggesting further upside potential. If the price breaks above $4.2, many analysts anticipate a move toward the psychological level of $5. The recent accumulation of 350 million XRP tokens by whales, valued at approximately $984 million, also signals renewed confidence in the asset’s future.

While the immediate focus remains on the SEC’s decision, the broader implications for XRP’s market position are clear. An ETF approval would not only enhance liquidity and accessibility for retail and institutional investors but could also elevate XRP’s standing within the crypto market. The launch of the CME XRP futures contract, which has already attracted over $1 billion in open interest, underscores the growing institutional interest in XRP. If the SEC approves the ETFs, XRP could follow a similar trajectory to Bitcoin and Ethereum, which have seen over $54 billion and $13 billion in inflows, respectively, since their ETF launches. The approval of XRP ETFs would represent a major milestone for the altcoin and could catalyze broader adoption across the crypto asset class.

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] What's next for XRP price as ETF approval chances hit 87%? (https://crypto.news/whats-next-for-xrp-price-as-etf-approval-chances-hit-87/)

[3] Fast track approval of XRP etfs. (https://www.reddit.com/r/XRP/comments/1n71brv/fast_track_approval_of_xrp_etfs/)