XRP Surges 7.08% as 10 Firms File for ETFs

Ripple’s XRP, the fourth most valuable cryptocurrency by market capitalization, is poised for a significant price rally as institutional demand surges. Market observers have noted a growing interest from asset managers, with over 10 firms filing for an XRP-based exchange-traded fund (ETF). This institutional attention could catalyze a much-needed price rally for XRP, according to prominent market figures.

Bitwise Asset Management, a firm with over $5 billion in assets under management, was the first to file for an XRP ETF in October 2024. Following Bitwise, other leading investment firms such as Canary Capital, MEMX, 21Shares, WisdomTree, Coinshares, Grayscale, Teucrium, Franklin Templeton, and ProShares have also filed for XRP ETFs. This flurry of activity indicates a strong institutional interest in XRP, which could drive significant liquidity into the market.

Two crypto proponents have suggested that the approval of an XRP ETF could spearhead a price rally for the asset. Institutional entry into the XRP market could function as a “giant vacuum cleaner,” quickly accumulating the asset’s liquidity. This influx of institutional capital could lead to a substantial increase in XRP’s price, as seen in the past with other assets that have received similar institutional backing.

In January, experts from a major financial institution predicted an $8 billion inflow if XRP ETFs were approved in the long term. This forecast underscores the potential for significant capital inflows into the XRP market, which could drive the asset’s price to new heights. The bullish predictions and positive sentiments have been validated by the SEC’s decision not to appeal the 2023 court ruling by U.S. District Judge Analisa Torres, which has further bolstered market confidence in XRP.

The week looks promising for XRP, as the altcoin’s price action suggests a potentially significant move for the asset. XRP’s Bollinger bandwidth, a key market indicator, has dropped to its lowest level for the first time since October 2024. Although a tight band could emerge after a market selloff, it has also historically kick-started a price rally for assets like Bitcoin and XRP. At the time of this report, XRP is valued at $2.21 per coin, up by 7.08% over the last 24 hours.