XRP News Today: XRP ETF Approval Odds Plummet to 7% Amid SEC Delays

The prospects for Ripple (XRP) Exchange-Traded Funds (ETFs) have seen a significant shift in recent months, with varying levels of optimism and pessimism among market participants. The United States Securities and Exchange Commission (SEC) has been focusing on institutional reforms rather than XRP spot ETF approval, leading to fading hopes among XRP investors. According to prediction platform Polymarket, the probability of approval for an XRP spot ETF had dropped to just 7% by the end of July, a stark decline from the 50% probability in April and 32% at the beginning of July.

The SEC is currently working on guidelines that would streamline the approval process for crypto spot ETFs. The SEC’s initial 12-page guidance document, published earlier this month, outlined standards for what ETFs must disclose. Bitwise CIO Matt Hougan called the existence of the guidance “an indication of the process of crypto ETFs integrating into the traditional financial system.” However, the main development that the markets are eagerly waiting for is hidden in the second directive, which has not yet been published. This document is expected to include new listing standards that will replace the current 19b-4 application process. It is said that negotiations within the SEC are ongoing and this second document may be completed in the fall. Therefore, market expectations for a new crypto ETF approval have also been postponed to these dates.

In this context, there were some expectations that a Solana (SOL)-based ETF could be the first product to be approved. The staking-based Solana ETF, which was launched in the past period, was considered the beginning of the “crypto ETF summer.” However, the SEC’s current approach seems to have weakened these hopes for now.

Despite the dwindling approval odds, there are still bullish sentiments within the market. XRP's price hit $2.35 as traders eagerly awaited the July 10 SEC meeting, hoping for clues on an appeal withdrawal and potential ETF-driven breakout. The market's anticipation was fueled by the possibility of a significant rally, with crypto analysts predicting a 600% increase following whale transfers and Ripple's push for a banking license. This optimism was further bolstered by the formation of a bullish triangle pattern, where a breakout above $2.23 could lead XRP toward $4.60. At one point, the approval odds for an XRP ETF hit 95%, significantly boosting market optimism.

However, the Securities and Exchange Commission's (SEC) stay on GDLC has delayed the potential debut of an XRP ETF, leaving investors in a state of limbo. The market is now eagerly awaiting the SEC's Ripple appeal vote, with ETF framework talks stirring further anticipation. The legal battles and regulatory hurdles continue to cast a shadow over the prospects of an XRP ETF, with the outcome of the SEC's appeal vote being crucial for the market's direction.

According to the analyst's forecast, a panel of cryptocurrency experts predicts that XRP could reach a maximum high of $13.05 in 2035. This long-term prediction, however, is subject to various market dynamics and regulatory developments. The current market sentiment is a mix of optimism and caution, with investors closely monitoring the regulatory landscape and legal proceedings. The approval of an XRP ETF would undoubtedly be a significant milestone for the cryptocurrency, but the path forward remains uncertain amidst the ongoing legal battles and regulatory scrutiny.