Discussions surrounding the potential approval of a US-based Exchange Traded Fund (ETF) for XRP, the digital asset native to Ripple, are gaining significant traction among market participants. This heightened anticipation, fueled by recent pro-crypto regulatory developments in the United States, has ignited speculation about a potential surge in XRP’s price. Experts suggest that a green light from the Securities and Exchange Commission (SEC) could act as a major catalyst, propelling XRP to new all-time highs.
Altcoin ETF Race Heats Up with XRP Leading the Charge
Amidst a shifting regulatory landscape that appears more favorable to the cryptocurrency industry, XRP is reportedly at the forefront of the altcoin ETF race, alongside Solana. Notably, nine firms have already filed applications with the US SEC seeking approval for an XRP ETF. While these applications remain under review, rumors circulating within the market hint at the possibility of BlackRock, aasset management giant overseeing trillions in assets, entering the fray.
Such a move could inject significant momentum into the approval process and send a powerful signal to investors. However, some analysts suggest reasons why BlackRock might still be hesitant to pursue an XRP ETF at this juncture.
Analyst Predicts Supply Squeeze and Price Surge Post-Approval
Crypto analyst “Good Morning Crypto” recently highlighted the potential impact of an XRP ETF, suggesting it could act as a “giant vacuum,” effectively pulling a significant amount of XRP out of circulation. As ETF investments flow in, the underlying XRP tokens would be moved into custodial holdings, thereby tightening the available supply.
This scarcity, coupled with increased demand from ETF investors, could create a classic demand shock, leading to substantial price appreciation. The analyst further posits that the launch of XRP ETFs could trigger scarcity-driven price growth as more investors lock up their tokens.
Regulatory Clarity and Institutional Adoption: A “Perfect Storm” for XRP?
Adding to the bullish sentiment, there’s optimism that regulatory clarity for the crypto market could materialize as early as August, particularly if US lawmakers pass new legislation addressing crypto taxation, infrastructure, and stablecoins. Such clarity could pave the way for businesses to integrate XRP into their daily operations, potentially sparking significant institutional adoption.
The recent appointment of Paul Atkins, perceived as pro-crypto, as the new US SEC chair has further amplified these discussions. Experts suggest that if ETFs begin accumulating XRP and companies anticipate future price increases, early stockpiling of the token could occur, mirroring a “front-loading effect” observed in commodity markets. Considering these factors, analysts are increasingly viewing the potential approval of an XRP ETF as a “perfect storm” for Ripple’s native asset.
XRP has already demonstrated strong upward momentum, recording gains of over 9% and reaching the $2.28 mark, accompanied by a significant 131% surge in its one-day trading volume to $5.56 billion. This rally coincides with a broader recovery in the cryptocurrency market, with Bitcoin surpassing the $93,000 level. Sistine Research suggests that the coin is poised to reach between $33 and $50 in the near term, describing this target as “conservative” based on historical patterns observed in 2017.
Target for XRP is $33 – $50.
— Sistine Research (@sistineresearch) April 22, 2025
Feels a bit conservative as we're following a very similar pattern as 2017, but much larger.
If you're willing to measure as a cup and handle, targets could be as high as $77 to $100. https://t.co/y32yhUomGm pic.twitter.com/9SFdcf8vCk
Furthermore, a “cup and handle” technical analysis pattern indicates a potential massive breakout, with price targets ranging from $77 to $100. Ultimately, the approval of an XRP ETF by the US SEC could unlock unprecedented price levels for the digital asset.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: XRP ETF Momentum Builds Amid ProShares Update
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
