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Highlights
- SEC has delayed their decision on the spot XRP ETF launch and others, keeping investors in anticipation.
- Demand for XRP ETF rising sharply, as Polymarket shows 79% approval odds.
- XXRP and other futures ETF launches raised the odds, but their performance is declining.
The focus of the crypto community has significantly shifted to the upcoming crypto exchange-traded funds approval, especially the spot XRP ETF. The popularity of spot Bitcoin and Ethereum ETFs is increasing investors’ expectations. However, as the Teuncrium’s XXRP ETF launch hype fades, there’s doubt on the spot ones’ performance. Let’s discuss.
Spot XRP ETF Approval Delayed: What Exactly is Spot ETF?
After the popularity of cryptocurrencies, the exchange-traded funds also gained attention, as the firms listed many futures and two spot ones, i.e., Bitcoin and Ethereum ETFs. Spot XRP ETF is another awaited launch, but the SEC has delayed their decision on ETF approval for a few more weeks, awaiting Paul Atkins’ full onboarding.
Investing in spot ETFs is quite similar to investing in cryptos, but the risk is reduced. To invest in crypto, an individual needs to have a crypto wallet, which is quite prone to the risk of theft, hacks, etc. However, that risk is no longer a concern if they invest in an ETF, as the ETF issuer (company) will hold the asset, and the users can simply trade.
The way of holding is the difference between spot and futures, where if the firm actually owns the token, it is a spot ETF, but if they have contracts speculating on the token’s future price, then it’s a futures ETF. XXRP is the best example as it’s a 2x leverage futures XRP ETF, recently launched by Teucrium.
Spot XRP ETF Launch Odds Rising Amid Demand
Ever since the Ethereum ETF got launched, the hype for the XRP ETF launch has constantly increased. The Polymarket data reveals hype around the Ripple ETF launch has hit 79% and even peaked at 87% in April.
The hype is building after the launch of a few futures and Brazil’s spot Ripple ETF. All of these have gained significant traction but failed to perform compared to expectations.
XXRP Futures ETF Sees Decline Amid Changing Trends
The XXRP ETF reached $67 million AUM under bullish performance, gaining a higher value than Ripple’s price. In its peak, it reached the price of $35.95 but has decreased since then, currently at $32.44 per NASDAQ stats.
This drop came with diverted trends around the Ripple ETF launch. The demand is higher for the spot XRP exchange-traded fund, which is due for launch. Another reason is the decline in the Ripple token’s price, currently trading at $2.17 after a 1.5% crash, which is contrasting with experts’ XRP price predictions based on exchange-traded funds.
Experts have been anticipating the spot launch based on the hype and demand for these futures ETFs. However, as the performance is declining, concerns are rising about how the actual spot XRP ETF post-launch would perform, especially as the performance of Ethereum ETFs is low compared to Bitcoin’s, signaling the demand for BTC only.
How Spot XRP ETF Could Perform After Launch?
CoinGape recently reported on the Spot XRP ETF performance based on the crypto experts and DeepSeek AI’s analysis. According to that, these exchange-traded products (spot & futures) would range between $1 billion and $2 billion in inflow. This conclusion is made based on the Ripple token’s high institutional and retail demand.
Moreover, the Bitcoin and Ethereum ETF inflows are also taken into consideration. Interestingly, JP Morgan estimated this inflow number to hit $8 billion or higher, surpassing Ethereum’s inflows. Notably, if this happened, the XRP price could hit $30 per analyst.
Besides these, SEC’s approval and bullish performance of the Ripple futures ETF are necessary to determine the correct trajectory.
Frequently Asked Questions (FAQs)
1. What is XXRP, and why is it declining in value?
2. How much inflow is expected if a spot XRP ETF is launched?
3. Why is the SEC delaying further crypto ETFs' approval?
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