XRP Price Slips: How SEC's ETF Approval Could Boost Crypto
Monday, Feb 17, 2025 7:21 am ET
4min read 
The crypto market has been abuzz with speculation about the U.S. Securities and Exchange Commission's (SEC) stance on XRP, with the potential approval of an exchange-traded fund (ETF) sparking excitement and debate. As the world of crypto never sleeps, let's explore how the SEC's approval of an XRP ETF could boost the crypto market and impact XRP's price.
The XRP ETF: A Game Changer?
Grayscale's recent application for an XRP ETF has ignited hopes within the XRP community and beyond. The SEC's official acknowledgment of the application is a critical step forward, signaling that XRP is being taken seriously in the world of institutional finance. While this doesn't guarantee approval, it has already sparked a significant price rally, with XRP jumping over 9% in a single day.
xrp's post-market trading volume(6519)xrp's post-market percentage change(6519)xrp's post-market trading volume;xrp's post-market percentage change(6519)
Post-Market Trading Volume(Shares)2025.02.14  | Post-Market Percentage Change%2025.02.14  |
|---|---|
| 36.46M | -26.14 |
| 24.17M | -19.52 |
| 21.59M | -2.43 |
| 12.27M | 44.76 |
| 11.04M | -0.10 |
| 10.92M | 0.90 |
| 9.83M | 24.12 |
| 8.57M | -7.14 |
| 8.09M | -0.28 |
| 7.52M | 0.04 |
Ticker |
|---|
| MGOLMGO Global |
| BHATBlue Hat Interactive Entertainment Technology |
| ADTXAditxt |
| GLYCGlycomimetics |
| FFord Motor |
| PFEPfizer |
| EDBLEdible Garden AG |
| CNSPCNS Pharmaceuticals |
| NVDANvidia |
| INTCIntel |
View 6519 results
An ETF would allow traditional investors to gain exposure to XRP without directly holding the token, which could flood the market with institutional capital, boosting liquidity and price stability. The mere acknowledgment of the application has already sparked a significant price rally, with XRP jumping over 9% in a single day.
Market Volatility and Regulatory Hurdles
Despite the optimism, market volatility and regulatory hurdles could still pose challenges to the approval and success of an XRP ETF. The crypto market is extremely unstable, with XRP experiencing huge fluctuations in recent months. This volatility could make it difficult for an XRP ETF to gain traction and maintain value, as investors may be hesitant to put their money into a highly volatile asset.
Moreover, the SEC's ongoing legal battle with Ripple and the uncertainty surrounding XRP's classification as a security could delay or complicate the approval process. The SEC's treatment of XRP may also influence broader regulatory cases against major crypto exchanges, including Binance and Coinbase. If XRP is ultimately classified as a commodity, it could set a precedent for how similar digital assets are treated.
Potential Price Impact
If the SEC approves an XRP ETF, analysts believe that XRP's price could surge, as seen in the following quote from crypto strategist EGRAG Crypto:
> "A sustained close above $3.40 would mark the first time XRP has reached a new all-time high in over seven years."
Historically, ETF approvals have been catalysts that drive crypto assets to the upside. For instance, Bitcoin had a big jump in price after its ETF approval, and Ethereum saw increased demand after some ETF approval rumors. If the XRP ETF is approved, analysts believe that XRP's price could surge, potentially leading to a significant rally.
Conclusion
The potential approval of an XRP ETF by the SEC could significantly enhance the crypto market's perception of XRP as a legitimate investment option, potentially leading to increased institutional adoption and price appreciation. However, regulatory hurdles and market volatility could still pose challenges to the success of an XRP ETF. The ultimate outcome will depend on various factors, including the SEC's evolving stance on crypto regulation and the market's response to the ETF. As the crypto market continues to evolve, investors will be watching closely to see if the SEC's approval of an XRP ETF could boost the crypto market and impact XRP's price.
