The crypto world is buzzing with anticipation: could an XRP ETF finally be on the horizon? Thanks to recent changes, though, those odds are looking more favorable, which could soon open the floodgates of private capital investment. Token ATH! will take a look at some of the key factors behind this optimism. What it might portend for the market.
Regulatory Winds Shifting?
In fact, the U.S. Securities and Exchange Commission (SEC) is currently accepting filings for XRP ETF products. This represents a sea change in the climate-finance nexus. Nine well-known players including household names such as Grayscale, VanEck, Ark Invest and WisdomTree are now vying for their turn in the spotlight. This admission marks at least a partial retreat from the SEC’s hardline position on XRP. The Ripple vs. SEC tussle has grown so contentious that some insinuate the SEC might even drop the case against Ripple as soon as Paul Atkins takes over as agency Chair. That might happen as soon as later today or sometime in the next few days, said Eleanor Terrett, host of CryptoAmerica.
The results coming in from Brazil are definitely raising the temperature! The first spot XRP ETF, HASHDEX NASDAQ XRP FUNDO DE ÍNDICE, is scheduled to begin trading in March 2025. This international approval provides additional momentum to the case for a U.S.-based XRP ETF. Perhaps even more shockingly is the NYSE Arca’s listing of Teucrium Investment Advisors’ leveraged XRP ETF on its big market debut. As Eric Balchunas, the senior ETF strategist at Bloomberg, tweeted last week, that’s an odd sequence of events. He pointed out that it’s unusual for a new asset’s first ETF to be leveraged. The 2x XRP ETF has more AUM than both Solana ETFs combined, even though it launched almost two months later.
These regulatory developments, both here at home and abroad, are contributing to a much-improved outlook for the future approval of XRP ETFs.
Market Momentum Builds
Outside of regulatory developments, the market itself has been looking bullish for XRP. The meme-based cryptocurrency has proven to be on a strong bullish run, marking 21 straight days of rising, showing that bullish sentiment continues to prevail among investors. As it stands, GOV Capital is very bullish on XRP in the short term. They forecast the price to shoot up to $4.78 in the next 12 months.
Rector, a leading voice in the crypto-skeptic movement, argues that XRP is in fact probably worth $15/token. He states, "Even a conservative read on market trends points to a level of appreciation that is nothing short of transformative." He further adds, "While no forecast is foolproof, the trends we are witnessing today suggest that a milestone like $15 per XRP isn’t just wishful thinking—it could very well be within reach."
Price predictions for XRP remain positive. For example, our analysis shows that by 2026, the minimum XRP price could drop to around $3.59. The maximum possible price is expected to be about $4.55, with the average coin trading at $3.69. By December 2025, analysts expect XRP to achieve a potential high trading price of about $1.98. They expect a possible low of $1.86 and an average of about $1.92.
The $8 Billion Question: Potential Impact and Risks
According to the bank’s estimates XRP ETFs might bring in $8 billion in investor flows in the first year. This new capital may increase the price of XRP and the entire crypto market considerably. Rector notes that the futures market affects the price of XRP. He underlines that the level of activity on the XRP Ledger’s decentralized exchange tells a big story.
Bearish sentiment exists. Long to short ratio 0.9681 A negative long to short ratio is indicative of traders positioning bearish in the short-term. Derivatives’ open interest dropped by 6.45% to $3.1 billion over the past 24 hours. This decrease has led to new worries on the security of the market.
- Macroeconomic risks: Renewed U.S.-China trade tensions, weak domestic data, or hawkish Fed guidance may pressure XRP to $1.70.
- SEC vs. Ripple Court Filings/Rulings: A negative outcome could suppress price momentum.
- Delays in SEC approval: can suppress price momentum.
The upside of an XRP ETF would be immense. The puckish opportunity won’t last forever. Investors should consider the risks carefully before investing a dime. Impact of an XRP ETF An XRP ETF would be a major milestone for XRP, but as always, it’s important to do your homework and be careful.
While the potential rewards of an XRP ETF are substantial, investors should carefully weigh these risks before making any decisions. An XRP ETF could be a game-changer for XRP, but it's essential to stay informed and proceed with caution.