The post XRP ETFs: Will They Trigger a New Bull Run for Ripple in 2025? appeared first on Coinpedia Fintech News
After Trump’s November victory, the crypto market surged, fueled by expectations of a pro-crypto-Republican stance. XRP soared 54.65% in a month to $2.31, achieving a market cap of $132.3 billion and a staggering 270% quarterly growth, securing its position as the fourth-largest cryptocurrency. Though XRP is down 4% today and trading at $4.25 the market is bullish in the long run with trading volume jumping a new high.
With XRP’s rising trend, the latest talk of the town is XRP ETF approvals. Leading crypto IRA platform iTrustCapital weighing in on their potential impact and how it will boost XRP. Following the approval of Bitcoin and Ethereum spot ETFs earlier this year, the spotlight is now on XRP, with several asset managers filing applications to launch XRP ETFs.
Bitwise took the lead, filing its S-1 application with the SEC on October 2, 2024. Canary Capital, 21Shares, and WisdomTree quickly followed, with the latter filing its application as recently as December 2. Grayscale Investments and Bitwise are also eyeing ETF baskets that include XRP, signaling a growing interest in tokenized investment products.
Two Driving Factors of XRP ETFs
iTrustCapital outlined the benefits of XRP ETFs, majorly focussing on two possible scenarios; accessibility and oversight. These products would allow investors to access XRP through traditional brokerage accounts while operating under-regulated financial markets, offering greater investor protection. Not only that XRP ETFs will be regulated asset with minimum risk involved.
However, there are notable drawbacks. ETFs involve limited trading hours, non-direct ownership of XRP, tracking errors, and high fees, which may drop the interest of some investors.
Crypto Impact
The approval of XRP ETFs could significantly impact XRP’s demand and supply dynamics. Institutional investors would need to acquire substantial amounts of XRP to back these funds, potentially driving up buying pressure and sparking a price surge.
Additionally, the launch of XRP ETFs could boost market attention and institutional adoption, positioning XRP as a key player in traditional finance. This recognition could attract a new wave of interest and investment into the token.
When Could XRP ETFs Go Live?
It is not clear when it will be officially launched, but speculation suggests XRP ETFs could hit in 2025 under a potentially crypto-friendly SEC leadership. With pro-crypto advocate Paul Atkins as SEC Chair, the market is bullish for an early approval once Trump takes charge.
Like Bitcoin ETFs have given a good start to down crypto market this year, XRP ETFs are also expected to follow the lead, with Solana ETF also in the race it will be interesting to see who gets the first mover advantage next year after Bitcoin.