XRP News Today: XRP Surges 20% on Potential U.S. Spot ETF Approval

XRP, the cryptocurrency associated with Ripple, has recently captured the attention of investors, with its price currently trading at approximately $2.30. The excitement surrounding XRP is fueled by the potential approval of a U.S.-listed spot XRP exchange-traded fund (ETF). The U.S. Securities and Exchange Commission (SEC) is currently evaluating a proposed XRP ETF by WisdomTree to ensure it offers adequate investor protection and safeguards against market manipulation. If approved, this ETF would represent a significant step toward broader institutional access and legitimacy for XRP.

The SEC has begun a formal review of the WisdomTree XRP Trust, as announced in a May 27 notice. This review process, which can last up to 240 days, will determine whether the ETF filing is approved or rejected. The proposed investment vehicle aims to track XRP’s market price using the CME CF Ripple-Dollar Reference Rate, allowing investors to gain exposure to XRP without the need to hold or store the token themselves. If approved, the WisdomTree XRP Trust would be the first American spot XRP market ETF, potentially opening the door for similar vehicles based on other altcoins. The SEC is seeking public comments to address concerns related to market manipulation and investor protection.

Several investment managers, including Franklin Templeton, 21Shares, Bitwise, and Grayscale, have submitted applications to introduce XRP ETFs in the U.S. The new administration in Washington has adopted a more lenient approach to cryptocurrency regulation, and the SEC has dropped most of the high-profile cases lodged during the previous administration. According to analysts' forecasts, there is an 85% chance of spot XRP ETF approval following the change in leadership at the SEC.

The potential approval of a spot XRP ETF has sparked speculation about its impact on XRP’s price. The approval of spot exchange-traded funds could unlock institutional capital, potentially amplifying demand for XRP and driving its price toward $10. Some analysts even suggest that if prominent players like BlackRock and Fidelity enter the market, the XRP price could reach the $100 threshold. However, these predictions are based on speculative analysis and should be considered with caution. The actual impact on XRP’s price will depend on various factors, including regulatory developments and market dynamics.