XRP ETF approval rates skyrocketed to 70% on cryptocurrency prediction market Polymarket today.
Optimism increased after XRP hit a historic peak of $3.39 for the first time in nearly seven years.
Optimism Grows About XRP ETF Approval
The success of Bitcoin ETFs in the United States in 2024 has prompted many asset management firms to apply for SEC approval for various altcoin ETFs. The current bull market and Trump’s strong support for the cryptocurrency industry have increased retail demand for digital asset-based funds.
This optimism is reflected in XRP’s market performance as the altcoin hit its highest ever, up more than 40% this week.
Investment banking groups such as JPMorgan recently projected that Solana and XRP ETFs could attract more than $14 billion in 2025. Based on this project, there is strong expectation that XRP ETFs could be approved this year.
“JPMorgan predicts that altcoin ETFs will attract $14 billion in inflows in the first year, $3-6 billion for Solana and $4-8 billion for XRP. My team doesn’t have an official prediction yet, but this seems like a reasonable estimate. However, prior approvals are required,” write ETF analyst Eric Balchunas.
Meanwhile, the rate on Polymarket also increased to 70% today. This is notable because a week ago the rate was below 50%. It is clear that the crypto community is increasingly confident that an ETF for XRP is only a matter of time.
SEC Still Is the Biggest Obstacle
Currently, four XRP ETF applications are pending in the US – WisdomTree, Bitwise, Canary Capital and 21Shares. The biggest challenge for these applications is the SEC.
Based on the regulator’s latest appeal, the SEC is still urging US lawmakers to treat XRP as a security. However, this challenge may not last long. With the inauguration of President-elect Trump next week, Gary Gensler, the current chairman of the SEC and Ripple’s biggest enemy, is expected to step down. Trump is also expected to reform the SEC’s regulatory framework.
Therefore, it is expected that the SEC will abandon its long-running lawsuit against Ripple. This is why the possibility of an XRP ETF becoming a reality is growing stronger, and even Ripple’s CEO thinks so.
“As expected, the SEC’s appeal is a reiteration of arguments that have failed – and are likely to be abandoned by the next administration. We will officially respond in time. For now, understand: the SEC lawsuit is just noise. A new era of regulation supporting innovation is coming, and Ripple is thriving,” write Stuart Alderoty, Ripple’s Chief Legal Officer.
However, it is almost certain that XRP will not be the first altcoin to have an ETF in 2025. This honor may go to Litecoin. As TinTucBitcoin previously reported, Nasdaq has applied to list Canary Capital’s Litecoin ETF.
Overall, the case for an XRP ETF is growing, but regulators still need to clear some hurdles to achieve this.