Financial regulators around the globe are becoming increasingly open to the idea of cryptographic tools, with numerous applications for spot XRP exchange-traded funds (ETFs) awaiting decision by the US Securities and Exchange Commission (SEC). If approved, this revolutionary move could have significant implications for investors, providing them with a new avenue to access XRP and potentially sparking a price upturn.
A Waiting Game for XRP-based ETFs
This anticipation surrounds the impending decision of the SEC, expected by mid-October 2025. Included in this bunch are applications from heavyweights like Grayscale, aiming to recast its XRP Trust into a spot ETF, and proposals from 21Shares and Bitwise. Depending on the assessment process, a verdict might be arrived at as early as mid-April 2025.
Despite the existing litigation between the SEC and Ripple, these applications came to light. The XRP community, with undying optimism, believes the prospects of approval have brightened under the currently conducive regulatory milieu for cryptocurrency.
Renowned Bloomberg ETF analysts, James Seyffart and Eric Balchunas, estimate a 65% probability of approval for an XRP spot ETF, as reported by Finbold.
XRP’s Price Prospects Deciphered by AI
In this backdrop, Finbold solicited the assistance of OpenAI’s ChatGPT-4o to predict XRP’s potential price trajectory should an ETF get the green light. This futuristic investment product could lure institutional capital, which could cause a significant impact.
The artificial intelligence (AI) model acknowledges that regulatory approval could inject a considerable price uptick for XRP. However, it warns that the growth extent will depend on various influencing factors.
One such contributing element would be the level of institutional demand. Notably, if eminent asset managers like BlackRock (NYSE: BLK) launch an XRP ETF, this could pool substantial capital and spur prices. The overall market sentiment will also play a pivotal role – should the wider crypto space remain bullish, XRP could possibly benefit from this optimism.
However, ChatGPT points out that, unlike Bitcoin (BTC), XRP has a sizable pre-mined supply, with a considerable chunk held in escrow by Ripple. Hence, significant ETF inflows would be necessary to counterbalance potential sell-offs.
Impending Regulatory Milestone for XRP
The approval of an ETF would symbolize a major accomplishment for XRP. The legal proceedings involving the SEC and Ripple earlier had a negative impact on the asset. Now, the prevailing belief is that a resolution to this legal dispute is imminent.
With Paul Atkins, a known pro-crypto advocate, being nominated to spearhead the agency, the XRP community is hopeful of a case dismissal or a settlement that would lean in Ripple’s favor.
Analysis of XRP’s Price Trends
As of the last update, XRP was exchanging hands at $2.58, a slight decrease of about 0.8% in the last 24 hours. Over the span of a week, the asset has seen a decline of over 7%.
Yet, despite this immediate struggle, XRP’s long-term outlook appears positive, supported by the 200-day SMA at $1.43. Meanwhile, it’s trading below the 50-day simple moving average (SMA) of $2.68 reflects potential short-term bearishness.
FAQs
What is XRP?
XRP is a digital asset and cryptocurrency that was developed by technology company Ripple Labs Inc.
What is an ETF?
An ETF, or Exchange-Traded Fund, is a type of investment fund that is traded on stock exchanges, similar to individual stocks.
What impact could an approved XRP ETF have?
If approved, an XRP ETF could offer investors a new way to gain exposure to XRP. This could potentially attract additional institutional capital, driving demand and potentially leading to a price increase.
