XRP ETF Approval On The Horizon: What To Expect For The Famous Crypto

The XRP, one of the top dogs in the crypto market, had been the talk of the week ever since the hype surrounding the spot ETF kicked up a notch. The coin even peaked at a high of $2.84, a dollar short of its all-time high recorded 6 years prior. Amid the overall rise of the crypto market, the spot ETF approval for the XRP could lead the token to new heights. In this article, we will look into the XRP ETF, its potential approval date, its impact on the price of the XRP coin, and whether it’s a good time to invest in the coin.

XRP ETF Overview

The XRP ETF is a type of investment scheme that allows users to gain exposure to XRP trading without needing to own it directly. In these ETFs, XRP and its related assets are clustered into a pool and are traded on a traditional exchange. XRP is currently ranked in the top 3 of the crypto market after its tremendous rally over the past month, which saw a growth rate of over 430%.

With Musk confirming that a crypto game changer is on the way, all eyes are on XRP’s ETF approval. As more and more XRP ETFs are planned especially by top companies, the coin has managed to gain a lot of traction in the market in the past few weeks. If the approval of the coin succeeds, then the price of the XRP could very well shoot past its all-time high of $3.8419, which was recorded on the 4th of January 2018.

WisdomTree Files for XRP spot ETF

Following Bitwise, 21Shares, and Canary Capitals, WisdomTree has also filed for an XRP spot ETF. These moves made by the famous firms are a key indicator of the growth of the XRP token, and its growing interest in the crypto realm. The Wisdom Tree filed a Form S-1 registration for the XRP ETF yesterday, 2nd December 2024. This ETF will track the coin’s price directly with the Bank of New York Mellon acting as the trust administrator. 

The main reason behind this key filing is the outstanding performance that the XRP token showcased in the last few weeks. As per the filing, the famed US crypto exchange Coinbase will serve as the prime execution agent and XRP custodian. If it is approved by the SEC, the ETF will make use of the cash-create method for the creation and redemption of shares. Also, the MER fee of the XRP ETF is about 0.5%, which makes it one of the lowest-cost ways to immerse yourself in XRP without actually owning it.

XRP ETF Potential Approval Date

Typically, it would take a couple of months, mainly 6-8 for the ETF to be approved. However, it could take longer for the XRP. Bitwise and Canary Capital filed it at the start of October and their approval is still pending as of now. This could mainly be attributed to the legal issues in the lawsuit surrounding Ripple Labs, which began in 2020.

The Ripple XRP ETF is currently expected to gain approval by the mid-2025 as per the word of Jeremy Hogan. As the SEC has 8 months from a filing to make a decision, the XRP ETF could be sooner rather than later. A successful XRP ETF could potentially improve the coin’s value and use as it did in the case of Ethereum. As of now, we can only wait and see what awaits the famed crypto coin and its ETF.r

XRP ETF Impacts on the Market

Following the XRP ETF filing of WisdomTree, the coin’s price has undergone a growth rate above 25% and reached a value of about $2.75. This had a tremendous impact on the token’s market capitalization, which now stands at $155.11 billion. The WisdomTree filing is the 4th XRP ETF filing in a span of 4 months. It alone showcases the potential of the XRP token and the growing institutional interest surrounding the famous cryptocurrency.

As the number of crypto ETFs increases, it has greatly helped in attracting more retail investors to the crypto world. If the ETFs get approved by the SEC, it could help the XRP token gain steady momentum and maintain its position in the crypto market. However, there is also another side to this. If the spot ETF does not get approved, it could result in a major blow for the coin.

Is It a Good Time to Invest in the XRP token?

As Gary Gensler is set to leave his seat as the SEC head on the 20th of January, it is looking exceptionally good for the famous currency. The coin’s current market sentiment is showcasing a “BULLISH” trend. However, various tier-1 analysts and technical indicators are claiming that the coin will drop by 24.66% and maintain a value of $2.03 by the start of 2025. The coin has been trading 20/30 days in green with a price volatility of 47.13%. 

Also, the Fear & Greed Index shows a value of 80, which is a clear indication of “Extreme Greed”. Even though the coin is expected to show a bearish trend in the upcoming weeks, if the SEC approves the spot ETFs, it could potentially drive the price of the coin to new levels. So, if you’re considering investing in the coin, keep in mind this and conduct your own research about the trends in the market before moving on with the investment.