Potential XRP ETF Approvals Could Propel the Cryptocurrency to Unprecedented Valuations
Key market analysts observe that growing interest from large investment entities in Ripple’s XRP, the fourth-largest cryptocurrency by market valuation, might serve as a crucial catalyst for a needed upswing in its price.
Institutional investors seem to be increasingly focused on this alternative digital currency, evidenced by the fact that more than ten distinct asset management firms have formally requested regulatory permission to launch XRP-based exchange-traded funds (ETFs).
Significantly, Bitwise Asset Management, a company overseeing assets exceeding $5 billion, initiated this wave of filings by applying for an XRP ETF back in October 2024.
This initial move was soon followed by similar applications from other established investment houses, including Canary Capital, MEMX, 21Shares, WisdomTree, Coinshares, Grayscale, Teucrium, Franklin Templeton, and ProShares, among others.
Echoing the sentiment, several cryptocurrency commentators have suggested that gaining approval for an XRP ETF could be instrumental in driving a substantial price increase for the asset.
Market watchers have theorized that the entry of institutional funds into the XRP ecosystem could function like a powerful absorption mechanism, rapidly diminishing the available supply of the asset on the open market.
Further bolstering this outlook, reports from January indicated that analysts at J.P. Morgan had projected potential long-term capital inflows amounting to $8 billion, should XRP ETFs successfully navigate the regulatory approval process.
These optimistic forecasts and positive market feelings arguably received validation when the U.S. Securities and Exchange Commission opted not to contest the 2023 court decision rendered by U.S. District Judge Analisa Torres concerning XRP’s classification.
Key Technical Signal Suggests XRP is Poised for a Significant Rally
The near-term prospects for XRP appear favorable, with the cryptocurrency’s recent market behavior hinting at a potentially large price movement.
A crucial technical indicator for market volatility, XRP’s Bollinger Bandwidth, has recently narrowed to its tightest point observed since October 2024.
Although such periods of reduced volatility (indicated by tight bands) can sometimes occur after market downturns, analysis of past performance for digital assets like Bitcoin and XRP demonstrates that these phases frequently precede major price fluctuations, often initiating upward trajectories.
Reinforcing this positive technical outlook, XRP was valued at $2.21 per coin at the time of reporting, representing a notable 7.08% gain within the prior 24-hour period.
Also Read: XRP is to Surpass Ethereum’s Market Cap by 2028 Standard Chartered Predicts
