- The odds of approval of an XRP ETF just jumped to 70% on Polymarket.
- XRP displays several key fundamentals that might impact its sustained growth in the coming months.
XRP, the digital asset associated with Ripple Labs, continues its upward momentum and is approaching a new All-Time High (ATH). This rising movement has pushed the probability of an XRP Exchange-Traded Fund (ETF) approval to over 70%.
Polymarket’s Forecast for XRP ETF Approval
Discussions around an XRP ETF approval heightened following the launch of Bitcoin (BTC) and Ethereum (ETH) ETFs last year.
In just a short time of launching, these investment instruments saw increased popularity and rising inflows. As highlighted in our previous article, inflows into Bitcoin ETFs soared to over $2.2 billion a few days before the US election.
While the growth of these funds has raised optimism for an XRP ETF, Ripple’s regulatory issues with the SEC remain a major constraint. However, the approval seems more likely now with Donald Trump’s election victory and news about the resignation of SEC’s Chairman, Gary Gensler.
Another factor contributing to the increased optimism of an XRP ETF is the coin’s surge close to its ATH. This move resulted in Polymarket traders predicting a 70% odds for an XRP ETF approval.
This forecast is notable as it represents a substantial jump from last week’s record of just 50%. This shift reflects the evolving mindset of individuals in response to the XRP price surge.
However, the probability of approval odds before July is still only 50% on Polymarket. Market analysts opine that the market will settle gradually in 2025 and the forthcoming years of Trump’s presidency.
In a recent update we covered, JPMorgan predicted that Ripple ETFs could attract inflows of $4-8 billion within the first year. Supporting this forecast, Bloomberg’s Senior ETF analyst Eric Balchunas said XRP ETF and SOL ETF could collectively attract $14 billion in their first year of approval.
It is, however, important to note that these figures are only predictions, and several other factors could impact potential inflows.
XRP Hits 7-Year Highs, What’s Next?
For now, XRP is trading at $3.27, demonstrating a surge of 7.2% within the last 24 hours. The daily trading volume is also up 4.8%, indicating investors’ increasing attention towards the coin.
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The ongoing surge has pushed the market cap to $23.9 billion. Hence, XRP is now trading as the third-biggest cryptocurrency.
XRP has followed a bullish trajectory since the US November elections. The altcoin achieved its biggest recovery earlier in the day, hitting a 7-year high at $3.38.
XRP’s move is a combination of an alignment of technical and fundamental factors. This ranges from Trump’s win to anticipations of the conclusion of the Ripple vs SEC case and Gensler’s resignation.
Furthermore, as we discussed earlier, XRP is also in consideration in the US strategic crypto reserve.
Analysts believe the ongoing momentum could push XRP above its previous ATH of $3.84 and potentially set new records.
