- A big financial advising firm forecasted that the approval of XRP ETFs will help their underlying asset reach $4 per token by October.
- One of the largest US banks projected that the new investment instruments could attract up to $8 billion in inflows.
XRP price skyrocketed to $3.65 per token last month, falling short of reaching its all-time high of $3.84 eight years ago. It eventually entered a considerable pullback under $3 as Bitcoin (BTC) and other top-ranked altcoins experienced corrections amid massive profit-taking.
With US President Donald Trump opening private equity and 401(k) accounts to cryptocurrencies in the Executive Order he signed on Thursday, the crypto market’s sentiment rose by 12 points from 62 to 74 on Friday. This gave another boost to the trading volume of altcoins, particularly XRP, which saw over a 100% rise in the number of times it was traded in the ensuing hours.
According to several financial experts, other catalysts are on the horizon that could propel the price of XRP to new heights, with the consensus eyeing $4 as a potential target.
Spot XRP ETFs Catalyzing the XRP Price Launch
One of the much-anticipated events within the XRP ecosystem is the looming final deadline for the US Securities and Exchange Commission’s (SEC) verdict on spot exchange-traded funds (ETFs) based on the asset. The applications from established players like Grayscale, 21Shares, and Bitwise are due between October 18 and 25.
According to financial advising firm The Motley Fool, the buzz surrounding the much-awaited event could substantially push the XRP price to $4 by October. Citing insider info, it claimed that the regulator may approve the spot XRP ETFs by September, following its recent rule change allowing in-kind creation and redemptions. This further fuels investors’ bullish sentiment.
If the SEC follows the same treatment it gave to BTC and ETH ETFs, it will likely do a mass approval on all XRP ETF issuers, or even together with other pending crypto ETFs. Meanwhile, Bloomberg Intelligence ETF specialists Eric Balchunas and James Seyffart are dead set on the 95% likelihood of these new investment products’ approval before the final deadline.
$8 Billion Demand for US Spot XRP ETFs Expected
JPMorgan’s previous predictions reinforce the prospect of the XRP price hitting $4 by October. As early as January this year, it predicted that XRP ETFs could rake in as much as $8 billion upon launch.
The potentially high demand, adoption, and positive sentiment could propel the XRP price toward the coveted $4 target. The Motley Fool explained that this is owing to the new ETFs’ “superior price tracking” of XRP. Unlike the mix of synthetic positions utilized by financial derivatives, spot XRP ETFs have the ability to buy their underlying asset directly in the spot crypto market.
In other words, spot XRP ETFs have 1-to-1 exposure to the price action of the token they’re based on. The only caveat of such a feature is that holders only own ETF shares, not the underlying asset directly. Nevertheless, it could pose buying pressure, which could later translate to retail FOMO.
SEC Vs. Ripple Case Not Yet Priced
News broke on August 7 that the SEC and Ripple have already filed a joint dismissal of their cases at the Second Circuit Court of Appeals. As of Friday, the market is still digesting the key development, and the market disconnect with this development could extend until the appellate court officially dismisses the case on August 15, per Bitget’s analysis.
Nonetheless, it would mark a significant milestone for both Ripple and XRP. The move would allow Ripple to focus better on its vision of global expansion and extend the reach of its XRP Ledger (XRPL)-based cross-border payment solutions. Analysts believe the finality of the legal issues between the SEC and XRP will help amplify investor confidence and demand for the token.
Disclaimer: The views and facts presented herein should not be construed as financial advice or product recommendation from the author and the Blockzeit team.
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