XRP News Today: XRP Futures Open Interest Surges 33% Amid ETF Approval Hopes

XRP has once again captured the attention of the market as anticipation builds around the potential approval of a dedicated XRP exchange-traded fund (ETF) by ProShares. According to CoinGape, open interest in XRP futures has surged to levels not seen since early 2024, peaking at 800 million XRP before stabilizing around 743 million, marking a 33% increase from just a few weeks ago. Open interest, which represents the total number of active futures contracts, is often seen as a key indicator of investor confidence and expectations of significant price movements.

Two primary factors are driving this surge. Firstly, ProShares, a well-known investment company, is rumored to be on the verge of launching an XRP ETF. Secondly, recent market data indicates a sharp increase in XRP futures activity, with the total value of open contracts nearing $5 billion. Adding to the speculation, the proposed ProShares XRP ETF has already been listed on the Depository Trust & Clearing Corporation (DTCC) platform. While this does not guarantee official approval from the U.S. Securities and Exchange Commission (SEC), it often signals that a launch could be imminent, as seen in the lead-up to the approval of Bitcoin ETFs.

Despite the heightened activity in derivatives markets, XRP’s spot price has remained relatively stable. Analysts attribute this stability to regional trading differences, particularly the significant inflow of XRP on Upbit, South Korea’s largest crypto exchange. This regional imbalance suggests that Korean traders are playing a crucial role in maintaining price stability, at least for the time being. Meanwhile, other international exchanges reported a combined net outflow of $8.82 million in XRP holdings.

Some market analysts are drawing parallels between current conditions and the market environment before XRP’s major rally in November 2024. The market spread, which is the difference between bid and ask prices, is currently around 6.14%, nearly identical to the spread observed just before XRP’s significant price jump last year. This similarity has sparked hopes of another potential rally.

Adding to the excitement, Donald Trump’s Truth Social platform has reportedly filed to create a new multi-asset crypto ETF. While most of this new fund will be invested in Bitcoin (70%), it will also include 2% in XRP, providing the token with additional mainstream visibility. With the ProShares XRP ETF potentially just days or weeks away from launch and open interest levels soaring, XRP could be on the brink of a significant breakout. If the SEC approves the ETF, it could open the doors for institutional investors to enter the market, potentially driving both futures and spot markets higher.

For now, all eyes are on Washington and the SEC. However, it is clear that traders are already placing their bets, and XRP is once again in the spotlight. The surge in open interest and the potential approval of the ProShares XRP ETF indicate growing interest and optimism among derivatives traders, who are feeling more positive about the market. The stability of XRP’s spot price, despite the futures trading spike, suggests that regional trading trends, particularly in South Korea, are playing a significant role in maintaining price stability. As broader demand shifts, this regional imbalance could cause further market fluctuations. The current market conditions, reminiscent of those before XRP’s rally in November 2024, have sparked hopes of another potential price movement. Additionally, the filing of a new multi-asset crypto ETF by Donald Trump’s Truth Social platform, which includes 2% in XRP, adds to the growing mainstream visibility and potential for the token. With these developments, XRP is poised for a potential breakout, and the market is eagerly awaiting the SEC’s decision on the ProShares XRP ETF.