XRP News Today: XRP Open Interest Surges 8% to $4.62 Billion on ETF Approval Hopes

XRP open interest has surged to $4.61 billion, driven by a significant increase in the odds of ETF approval, which now stands at 87%. This surge follows the U.S. Securities and Exchange Commission's approval of Grayscale’s Digital Large Cap Fund conversion into an ETF, which includes XRP among other digital assets such as Bitcoin, Ethereum, Solana, and Cardano. This approval has sparked substantial institutional interest and potential price appreciation for XRP.

The approval of Grayscale’s ETF has led to a rise in XRP's open interest, indicating heightened trading activity. Following the announcement, XRP's price increased by 5%, crossing the $2.29 mark. This move reflects the SEC's willingness to accommodate diverse crypto funds under its regulatory umbrella. Institutional flows in XRP, resulting from Grayscale’s ETF status, could channel large-scale capital inflow into the cryptocurrency. This move is likely to affect related tokens like BTC, ETH, SOL, and ADA, thus influencing broader crypto market dynamics.

Historical market patterns suggest that similar ETF approvals have previously driven all-time highs for Bitcoin and benefited correlated altcoins. Analysts predict an "altcoin ETF summer," expecting potential ETFs for LTC, DOGE, and others. The SEC's progressive actions may set a precedent for future crypto-based financial products. According to the analyst's forecast, further regulatory approvals for crypto-indexed ETFs are anticipated in the near future.

The increased odds of an XRP ETF approval have contributed to a significant upswing in XRP's price, jumping 17% this week. This surge in open interest signals the return of derivatives traders and the growing interest in XRP. The recent banking license application by Ripple has increased the interest of futures traders in the altcoin. Within 24 hours, Ripple’s open interest increased by 8% to $4.62 billion, its highest in more than one month. The rising open interest is from the traders who are opening long positions that the XRP price will rise, because the long/short ratio is back to a neutral level of 1, while it remains above 2 on Binance. Moreover, all the positions that had been opened by Hyperliquid whales on July 3 were longs at press time.

The falling wedge breakout hints that the XRP price could make a strong upward trend, with a 78% rally to $3.96 likely to happen. This rally becomes even more likely to happen considering the ongoing efforts by Ripple to get regulatory greenlight to expand into the banking industry. The RSI indicator is actively defending the 50 mean level, and Ripple has continued to fluctuate above this metric, indicating that the momentum remains bullish despite facing weakness. If the indicator continues its ascent and forms a higher high, it will confirm the breakout from the trendline resistance and clear the way for the XRP price to rally to $3.96.