XRP ETF Hype Builds, But Price Struggles To Capitalize

NOIDA (CoinChapter.com) — The race for an XRP Exchange-Traded Fund (ETF) is gaining momentum as major financial institutions filed applications with the U.S. Securities and Exchange Commission (SEC). Nasdaq recently submitted a 19b-4 form to list CoinShares’ XRP and Litecoin ETFs, highlighting the growing institutional interest in crypto assets.

Meanwhile, Grayscale is pushing to convert its XRP Trust into an ETF, and Cboe has filed multiple applications to list XRP ETFs from Canary, 21Shares, Bitwise, and WisdomTree. The wave of filings underscores growing confidence in XRP’s role in the evolving financial landscape. Despite the ongoing Ripple vs. SEC lawsuit, top legal experts argue it has no impact on the ETF approval process.

Bloomberg analysts James Seyffart and Eric Balchunas estimate a 65% chance of approval in 2025, further fueling investor optimism. Their analysis also suggests higher approval probabilities for other cryptocurrencies, with Litecoin at 90%, Dogecoin at 75%, and Solana at 70%. With rising institutional demand and shifting regulatory attitudes, XRP’s ETF approval appears increasingly likely in the coming months.

XRP ETF Approval Could Face Delays Despite Legal Green Light

The XRP ETF approval process may not be as immediate as some investors hope. While the SEC could approve an application relatively quickly, the required S-1 registration process could extend the timeline to eight to twelve months. Jeremy Hogan pointed out that while the ETF approval itself isn’t the main challenge, the detailed regulatory steps required after approval slow the process.

Nasdaq’s move to file for an XRP ETF, alongside other major firms, signals increasing institutional confidence in crypto ETFs. CoinShares has already submitted an S-1 form, marking another step toward a potential listing. These filings indicate that traditional finance is preparing for broader crypto ETF adoption, with XRP positioned as a key player.

Pro-XRP attorney Jeremy Hogan explained that the lawsuit primarily concerns specific XRP sales, not the broader classification of the asset. Since the SEC has approved ETFs for assets facing legal scrutiny before, there is no regulatory roadblock preventing an XRP ETF approval.

Despite regulatory optimism, the legal battle between Ripple and the SEC remains unresolved. The lawsuit, which began in Dec. 2020, led to a partial victory for Ripple in Aug. 2024 when a court ordered the company to pay a $125 million civil penalty. The SEC, however, appealed a previous ruling, prolonging the case. Legal experts, including Hogan, believe a settlement could come before an ETF approval, but it’s not a prerequisite.

With major financial firms positioning for an XRP ETF and institutional demand rising, regulatory hurdles are more procedural than legal. The shifting landscape suggests that while approval is on the horizon, the wait could extend into 2025.

XRP Price Dips Despite Hype

XRP’s rally has stalled near key resistance, with price trading around $2.41. Despite growing excitement around a potential ETF approval, buyers are struggling to push past critical levels. The Ripple token has moved laterally since Feb. 6, suggesting market participants are not choosing to commit. As such, a clear bullish cue could help XRP price restart its bullrun

The immediate resistance stands near $3.45, aligning with the 0.786 Fibonacci retracement. A breakout could open the door for a move toward $4.23, but failure to clear this zone may lead to prolonged consolidation. On the downside, support lies near $2.00, corresponding with the 0.382 Fibonacci level. A drop below this mark could see XRP testing $1.69, where stronger demand may emerge.

Technical indicators highlight growing bearish pressure. The RSI sits at 38.6, approaching oversold territory, suggesting a potential bounce if buying pressure increases. However, volume has declined, signaling a lack of strong conviction among bulls. While moving averages remain bullish on a larger timeframe, the short-term outlook hinges on whether buyers can reclaim lost ground.

XRP’s ETF narrative continues to drive speculation, but the price action suggests that approval hype alone won’t sustain upward momentum. Bulls need to flip $3.45 into support to regain control. Until then, further dips remain on the table, and traders should watch for volume spikes or RSI reversals to confirm a trend shift.

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