XRP’s Exchange-Traded Fund (ETF) approval has surged to 70%, as predicted on Polymarket, a popular crypto-based prediction platform. This shift comes amid growing optimism after XRP experienced a major price surge, hitting $3.39 for the first time in almost seven years. This recent surge in XRP’s price, coupled with an overall bullish sentiment in the crypto market, has contributed to increased confidence among investors and market analysts regarding the approval of XRP-based ETFs.
XRP’s Surge and ETF Expectations
The increasing anticipation surrounding XRP ETFs comes on the back of an overall positive trend in the cryptocurrency market. XRP, having risen by more than 40% in just one week, reached a record high, further reinforcing the belief that it is on the verge of becoming a prominent player in the ETF space. As investors become more enthusiastic about digital assets, the potential for altcoins like XRP to secure approval for ETFs has gathered momentum.
JPMorgan, a key financial player, also weighed in on the subject, predicting that Solana and XRP ETFs could collectively see over $14 billion in capital inflows in 2025. The expectation is that these altcoin ETFs could draw significant attention, with XRP’s share of that amount estimated to be between $4 billion and $8 billion. This optimism is further fueled by U.S. Bitcoin ETF successes in 2024, which have set a precedent for other digital assets.
Polymarket Odds Reflect Growing Confidence
Polymarket’s odds on the approval of XRP ETFs have jumped to 70%, significantly increasing from less than 50% just a week ago. This rise demonstrates the heightened confidence within the cryptocurrency community, with many viewing the approval of XRP ETFs as an eventuality, rather than a distant dream. As the anticipation grows, investors are optimistic that regulatory challenges will soon be overcome, bringing XRP ETFs closer to reality.
However, the SEC’s Role Remains Key
Despite the growing confidence, the U.S. Securities and Exchange Commission (SEC) continues to be the primary obstacle in the approval process for XRP ETFs. At present, four XRP ETF applications are pending with the SEC: WisdomTree, Bitwise, Canary Capital, and 21Shares. The main challenge facing these applications stems from the SEC’s stance on XRP, which it still considers a security. However, the tides may be turning, as there are indications that the regulatory environment could shift.
With the upcoming inauguration of President-elect Trump, changes at the SEC are anticipated. Gary Gensler, the current SEC chair, a known opponent of Ripple and its XRP token, is expected to resign. This shift could lead to the reevaluation of XRP’s legal status, potentially dropping the long-standing lawsuit filed against Ripple. Legal experts and Ripple executives alike are hopeful that these developments will facilitate a more favorable environment for XRP ETF approval.
Ripple’s CEO, Brad Garlinghouse, has expressed confidence in this shift, emphasizing that the SEC’s ongoing appeal is based on previously unsuccessful arguments. He believes that the transition to pro-innovation regulation under the incoming administration will benefit Ripple and its projects, including the XRP ETF.
In Conclusion
While the SEC remains a significant hurdle, the increasing optimism surrounding XRP and its potential for ETF approval is undeniable. The likelihood of an XRP ETF approval has strengthened, and with regulatory shifts on the horizon, it may not be long before the first XRP ETF is introduced. However, as of now, Litecoin is likely to be the first altcoin to secure an ETF approval in 2025, as its ETF application is already in motion.
The XRP ETF story is far from over, but the growing probability of approval is a positive sign for investors and the broader crypto space.
Get the latest Crypto & Blockchain News in your inbox.