XRP ETF Approval: Will It Trigger a Massive Price Surge or Collapse?

The possibility of an XRP exchange-traded fund (ETF) approval has become one of the hottest topics in the crypto world.

Some see it as the next big catalyst that could push XRP to record highs, while others believe it may highlight the token’s weaknesses.

With more than 90 crypto ETF applications currently pending before the U.S. Securities and Exchange Commission (SEC), the outcome for XRP could shape not only its own price trajectory but also the wider crypto market.

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Key Takeaways

1. Analyst divide: Some predict XRP ETFs could attract billions, others doubt institutional demand.

2. SEC backlog: With 90+ ETF applications, XRP faces competition but also a chance for fast-tracking.

3. Price impact: Approval could boost XRP above $3.00, but rejection risks pushing it lower.

XRP ETF: The Case for Optimism

For bullish analysts, the case for XRP ETFs is straightforward. Ripple’s native token already plays a central role in cross-border payments, and institutional investors could see it as a practical, regulated alternative to Bitcoin and Ethereum.

Canary Capital CEO Steven McClurg made headlines by suggesting that an XRP ETF could generate as much as $5 billion in inflows during its first month.

He argued that XRP could even rival Ethereum’s dominance in financial services, given its established use cases.

From a technical perspective, XRP’s price action also supports optimism. The token is currently holding above the $2.76 support on the 100-day EMA.

Analysts point out that reclaiming the $3.00 level could open the door to retesting its record high at $3.66.

A sustained push above this zone would significantly strengthen the bullish outlook, particularly if ETF approval arrives in parallel.

In this scenario, XRP would not just benefit from speculative hype but also from renewed institutional interest, potentially shifting long-term market sentiment in its favor.

Read Also: XRP September 2025 Warning: Will Price Crash 10% or Surprise with a Bullish Rebound?

The Bearish View: Risks of ETF Approval

Not everyone is convinced. Critics argue that an XRP ETF could expose the token’s lack of strong institutional demand.

While Bitcoin has cemented itself as digital gold and Ethereum powers decentralized applications, XRP lacks a comparable narrative that appeals to big money investors.

Crypto analyst AdrianoFeria.eth voiced skepticism, suggesting that ETF approval could mark “the beginning of the end” for XRP.

His reasoning lies in the possibility that institutions may simply ignore the product, leaving retail traders to carry the market alone.

If that happens, approval could trigger a classic “buy the rumor, sell the news” event, with price collapsing once initial excitement fades.

Technical indicators also reflect caution. The Relative Strength Index (RSI) remains at 41, signaling weak momentum.

Meanwhile, the MACD has been flashing a sell signal since July, pointing to potential downside risk if support levels fail. A drop below the $2.76 EMA could expose XRP to further losses toward $2.51 or even lower.

This bearish scenario underscores the importance of demand. Without strong inflows, even a historic approval may not translate into lasting gains.

Read Also: XRP Price on Edge: Will Ripple Break Out or Face a Massive Crash?

SEC’s Fast-Track Proposal and Its Implications

Beyond the debate between bulls and bears, the SEC’s evolving approach to ETF approvals could play a decisive role.

The agency currently faces a backlog of over 90 crypto ETF applications, ranging from large-cap assets like Solana and Cardano to meme coins like Dogecoin and Bonk.

To address the congestion, major exchanges such as Cboe, NASDAQ, and NYSE Arca have submitted proposals to streamline the process.

Their three-condition criteria could allow select tokens, including XRP, to qualify for faster approval.

These conditions focus on factors such as existing futures contracts, trading history on designated markets, and minimum exposure requirements.

If approved, the fast-track system could put XRP in line for an ETF listing as early as the fourth quarter of 2025.

Such a development would not only enhance its credibility but also broaden access for institutional investors who prefer regulated products.

Read Also: XRP ETF Rumors Surge: Will Ripple Gain Wall Street’s Nod?

Conclusion

The XRP ETF debate is more than speculation. It represents a crossroads for the token’s future. On one side, approval could legitimize XRP as an institutional asset, boosting inflows and lifting price above critical resistance levels.

On the other, skepticism about demand could mean that approval delivers less impact than expected, leaving traders disappointed.

For now, XRP continues to hover near key support, with bulls eyeing $3.00 as the breakout point. Whether ETF approval will fuel a rally or expose vulnerabilities remains uncertain.

Traders should watch both SEC developments and market momentum closely in the coming weeks.

For those looking to engage with XRP or other digital assets, platforms like Bitrue provide a reliable and secure environment for trading.

With user-friendly tools and a focus on safety, Bitrue offers an accessible way to navigate both ETF-driven opportunities and broader crypto volatility.

FAQ

What is an XRP ETF?

An XRP ETF is a financial product that allows investors to gain exposure to XRP through traditional markets without directly holding the token.

When could the SEC approve an XRP ETF?

The SEC is reviewing 90+ crypto ETF applications, with deadlines falling in late 2025. XRP could qualify for fast-tracking under new proposals.

How could an ETF affect XRP price?

Approval could attract institutional inflows and push XRP higher. However, lack of demand may lead to limited impact or even a price drop.

What risks come with XRP ETF approval?

The main risk is that institutions may not show interest, leading to a “buy the rumor, sell the news” scenario with declining prices.

Where can I trade XRP today?

XRP is available on major crypto exchanges. For safer and easier trading, Bitrue is a recommended option with strong security and liquidity.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.