In January 2023, the United States Securities and Exchange Commission (SEC) approved multiple spot Bitcoin Exchange-traded funds (ETFs). Since then, the cryptocurrency community has been abuzz with the possibility of an XRP ETF being approved. This long-awaited development paves the way for other single-asset crypto ETFs.
With the price of XRP underperforming and a 24% decline since November 6, can this bullish sentiment bolster the price?
Interest in an XRP ETF, initially sparked by a false BlackRock filing last year, has reignited. Given recent developments, Steve McClurg of Valkyrie expressed optimism about the potential for Ethereum (ETH) and Ripple (XRP) ETFs in a Bloomberg interview.
The XRP community is hopeful about the prospect of an XRP ETF. Influential figures like Anodos co-founder Panos Mekras and YouTuber Zach Rector have expressed confidence in its inevitability. Rector said that such approval would not classify XRP as a security. Following the Bitcoin ETF approval, crypto Tweeter Chad Steingraber anticipates increased demand for ETFs like XRP.
Grayscale Investments recently announced the re-addition of XRP to its Digital Large Cap Fund. This lifted XRP community’s spirits even higher. However, some believe the launch of an XRP ETF might be postponed until the SEC vs. Ripple lawsuit is resolved.
Despite the optimism, skeptics warn that non-Bitcoin-related crypto ETFs might face hurdles under the SEC’s current leadership. If that were to happen, they could need approval from Congress.
In a broader context, the successful approval of spot Bitcoin ETFs by firms like Blackrock, Fidelity, and Grayscale, now filing for Ethereum ETFs, is seen as a test of the crypto industry’s regulatory acceptance and maturity. This trend could indicate a new era of wider cryptocurrency ETF acceptance.
From November 6, when the price of XRP peaked at $0.74, we saw it decline by 24%, measured to its recent low of $0.55 on January 8. Some positive signs have been seen since then, as it recovered to $0.622 on January 11.
Another downturn came after, with the price falling to $0.56. This is, however, still a higher low than on January 8, which could be a reason to stay bullish. As it ended its multi-year correction on October 12 and recovered 52%, this move from November 6 could be its first bull market correction as the second sub-wave of a more significant five-wave uptrend.
If this is true, it might have ended on the recent low or would do so soon. The price made a three-wave decline, typical of these corrective stages. Compared to the prior uptrend, the price was slower, indicating that buyers are still in control.
It is currently looking for support around the 0.618 Fibonacci level; if it finds it, an upturn is likely. If that happens, a new, more decisive, uptrend will start that can lead the price of XRP to $1 and, potentially, slightly higher.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.