Anticipation builds for XRP Exchange-Traded Fund (ETF) approval, with Polymarket odds surging to 70%.
After a major price surge, hitting $3.39 for the first time in almost seven years, XRP has attracted increasing optimism regarding its ETF approval. This anticipation is particularly strong among investors and market analysts, following a recent record-breaking performance by XRP. As the cryptocurrency enjoyed a bullish wave, rising by more than 40% in just one week, its potential to secure approval for an ETF has gathered momentum.
According to predictions by JPMorgan, Solana and XRP ETFs could collectively see more than $14 billion in capital inflows by 2025. Among altcoin ETFs, these two are expected to draw the most attention, with XRP’s share of that amount estimated to be between $4 billion and $8 billion. This optimism is further fueled by the success of U.S. Bitcoin ETFs in 2024, which could pave the way for other digital assets to enter the ETF space.
Polymarket odds on the approval of XRP ETFs have jumped to 70%, increasing significantly from less than 50% just a week ago. This rise in odds 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 the remaining regulatory challenges will soon be overcome, bringing XRP ETFs closer to reality. However, the U.S. Securities and Exchange Commission (SEC) continues to be the primary obstacle in the approval process. At present, there are four applications for XRP ETFs 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 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.
