What to Anticipate with Potential XRP ETF Approval from the SEC

Crypto evaluator Jungle has disclosed what to anticipate if the SEC sanctions the XRP ETFs. He forecasts that these funds could have a comparable influence on XRP, similar to how the Bitcoin ETFs impacted BTC. 

Consequences If The XRP ETFs Are Approved

In an X post, Jungle expressed that if a spot XRP ETF gains approval, it will not only provide Wall Street investors with access to XRP but will also fundamentally alter the altcoin’s market dynamics. The analyst then referenced the aftermath for Bitcoin following the introduction of BlackRock’s Bitcoin ETF IBIT. 

He observed that the Bitcoin price has stayed volatile but that the assets under management (AuM) for BlackRock’s Bitcoin ETF continued to ascend even during every downturn. Jungle mentioned that this indicates institutions kept purchasing during dips and built their positions rather than engaging in panic-selling. The analyst noted that this accumulation by institutional investors fostered a more stable price movement for BTC compared to earlier cycles, during which it experienced declines of up to 50%. 

Jungle indicated that a steady influx of capital has established a structural bid under Bitcoin. The analyst noted that institutional interest has redefined BTC into a more sophisticated and stable asset class. Presently, he anticipates a similar positive trend for the XRP price with the XRP ETFs, with every decline encountering institutional inflows. The analyst characterized these inflows as sticky capital that accumulates for the long haul instead of fleeing during volatility. 

In this context, Jungle stated that a new baseline for the XRP price will be established and that a transition from hype-driven phases to sustainable, Wall Street-supported growth will take place. He further commented that the rollout of Bitcoin ETFs did not just create demand; it also altered the marketplace. 

The analyst asserted that an XRP ETF could achieve the same effect by “rewriting the framework for XRP’s future.” He added that XRP has already demonstrated retail resilience and that when combined with institutional inflows, the narrative shifts entirely. 

Chances of Approval Reach 93%

Polymarket statistics indicate that the likelihood of the SEC approving an XRP ETF this year has risen to 93%, an increase of over 6% in the past week. This further substantiates that the Commission is likely to ratify these funds by the final deadline next month. The first of these final deadlines is approaching for Grayscale’s XRP ETF on October 18, when the agency must either approve or reject the proposed rule change to list and trade shares of this fund. 

Meanwhile, Bloomberg analysts Eric Balchunas and James Seyffart have already indicated that there is a 95% probability that these funds will receive approval by the final deadline. The dismissal of the XRP lawsuit has also fueled optimism that the SEC will endorse these XRP ETFs by the due date. 

At the moment of writing, the XRP price is trading at approximately $2.96, having risen over 2% in the last 24 hours, according to data from CoinMarketCap.

Featured image sourced from Adobe Stock, chart from Tradingview.com

Editorial Procedure for bitcoinist is focused on providing thoroughly researched, precise, and impartial material. We adhere to rigorous sourcing standards, and each page is subjected to careful review by our team of leading technology experts and experienced editors. This process guarantees the integrity, relevance, and value of our material for our audience.