The recent surge in XRP's open interest to $4.61 billion coincided with an increase in the probability of ETF approval to 87%, sparking institutional interest.
Rising Interest in XRP and ETF Markets
XRP's open interest surged to $4.61 billion amid growing odds for ETF approval now at 87%. This spike followed the SEC's approval of Grayscale's conversion to an ETF, leading to increased interest in the crypto markets. XRP, along with Bitcoin, Ethereum, Solana, and Cardano, is now included in this multi-token ETF.
Significance of Grayscale ETF Approval
Grayscale's ETF approval represents a critical shift in XRP's market landscape, driving substantial institutional demand and potential price appreciation. Following the announcement, XRP's price rose by 5%, surpassing $2.29. This reflects the SEC's readiness to accommodate a variety of crypto funds under its regulatory supervision. Institutional flows into XRP stemming from Grayscale's ETF status could lead to significant capital inflows into the cryptocurrency.
Expert Predictions on Future ETFs
Historical market patterns indicate that similar ETF approvals have previously driven price surges for Bitcoin and benefited correlated altcoins. Analysts expect a launch of new ETFs for assets like LTC and DOGE in the near future. Bloomberg analysts, including Eric Balchunas, predict a wave of new ETFs in the latter half of 2025.
Overall, the Grayscale ETF approval and the surge in XRP's open interest mark a critical development in the cryptocurrency market, creating potential avenues for future investments and regulation.
