Cboe BZX Exchange has filed a 19b-4 application on behalf of four asset managers—Canary Capital, WisdomTree, 21Shares, and Bitwise—aiming to create the first spot XRP ETFs in the United States. This action could significantly impact the value of XRP, which is in search of regulatory clarity.
XRP ETF Approval on the Horizon?
The filings signal renewed interest in XRP ETFs, especially following the SEC’s approval of Bitcoin and Ethereum ETFs. With acting SEC Chair Mark Uyeda seen as more crypto-friendly, the chances of XRP ETF approval appear stronger. The filings are particularly important as they notify the SEC of proposed rule changes that, if adopted, would see the first U.S. XRP ETFs realized.
Market sentiment and the regulatory environment
Asset managers are proactively interacting with regulators to ensure market integrity and investor safety. The overall goal is to source XRP from the secondary market rather than Ripple Labs, which is relevant given the SEC's ongoing appeal in the Ripple Labs case to determine whether XRP is a security. Despite regulatory hurdles, market optimism remains high. According to JPMorgan, spot XRP ETFs may attract an additional $4 billion to $8 billion in new assets within the first year of launch. The recent price performance of XRP, currently valued at $2.31 after a 5.93% decline over the past day, reflects this optimism.
Future XRP Price Predictions
According to forecasts, XRP is likely to trade between $3.50 and $5.00 by the end of 2025, contingent upon significant market changes. Key conditions for these changes include a favorable verdict in Ripple's legal battle and increasing institutional use of its On-demand Liquidity (ODL) platform. The entire process sets the 45-day SEC review period, which will largely determine whether XRP ETFs will be approved in the upcoming weeks. If approved, it could open the gateway for XRP into established financial markets.
Approval of XRP ETFs could herald a new chapter for cryptocurrency investments, significantly bolstering XRP's standing in global financial markets.
