The U.S. Securities and Exchange Commission (SEC) is currently reviewing a range of applications for XRP-based exchange-traded funds (ETFs), as more than 90 altcoin ETFs are pending a decision. The anticipation surrounding these applications has heightened interest in XRP, which saw its price peak at $3.65 in July. Industry analysts are predicting that the approval of spot XRP ETFs could lead to over $5 billion in inflows within their first month of trading.
Experts, such as Nate Geraci, co-founder of the ETF Institute, believe that the potential demand for XRP and Solana ETFs has been significantly underestimated. In a recent statement, Geraci highlighted that previous ETFs for Bitcoin and Ethereum faced similar skepticism before their launches. He emphasized that many investors remain unaware of the substantial appetite for spot XRP.
As the October deadline for SEC decisions approaches, close to a dozen XRP ETF applications are under review. Recent filings from several fund hopefuls were updated last week, which analysts have interpreted as a positive signal. On Polymarket, the probability of an approved XRP ETF surged by 16% in just 24 hours, reaching an 87% likelihood. In August, Bloomberg analysts assigned a 95% chance of approval.
JPMorgan analysts predicted an influx of up to $8 billion in XRP ETF investments within the first year. More bullish forecasts have emerged, with Canary Capital’s CEO predicting up to $5 billion in the first month alone. Though this figure is substantial, it falls short of the nearly $2 billion in inflows that Bitcoin ETFs attracted within their first three trading days.
Current XRP exchange-traded products can provide some insight into the potential demand for a spot ETF. In April, Teucrium launched a leveraged XRP ETF that has accumulated approximately $353 million in net assets—significantly outperforming Teucrium’s traditional agro-based ETFs.
Amidst this backdrop, XRP was trading at $2.81, marking a nearly 1% decline in the last 24 hours. This drop follows a notable 23% decrease since reaching a new all-time high on July 18, largely attributed to profit-taking among large investors who sold $6 billion worth of XRP in about three weeks. However, recent data suggests that these market dynamics may be shifting. Whales have begun accumulating XRP again, purchasing around 350 million coins valued at approximately $984 million over the past two weeks.
