XRP ETF Speculation Builds - What It Could Mean for Price in 2025
2025-08-05
Ripple’s native token XRP is once again at the center of market buzz, this time fueled by growing speculation about a possible XRP exchange-traded fund (ETF) approval.
As rumors circulate in financial circles and crypto forums, investors are beginning to ask, if an XRP ETF is approved in 2025, what could that mean for its price and long-term outlook?
While ETF speculation alone can drive short-term volatility, the larger question is whether XRP’s fundamentals, combined with institutional interest, are strong enough to support a sustainable rise.
The current technical indicators present a mixed picture, but with significant developments on the XRP Ledger and growing market attention, the conversation around an XRP ETF in 2025 is impossible to ignore.
Why an XRP ETF Matters
The idea of an XRP ETF approval is being discussed alongside Bitcoin and Ethereum ETF launches that have already drawn massive institutional capital.
If approved, a Ripple ETF would open the doors to traditional investors and institutional funds that typically avoid direct exposure to cryptocurrencies.
An ETF serves as a regulated investment vehicle that mirrors the price of the underlying asset, in this case, XRP, without requiring investors to manage digital wallets or navigate crypto exchanges.
That accessibility could increase liquidity and demand for XRP. In essence, the impact of an XRP ETF goes beyond hype; it has the potential to reshape XRP’s investor profile by including hedge funds, retirement portfolios, and wealth managers.
However, Ripple still faces regulatory scrutiny in the United States, and whether the Securities and Exchange Commission (SEC) would approve such a product remains uncertain.
That said, XRP institutional interest has been on the rise, especially after Ripple’s partial legal win against the SEC, which clarified the status of XRP sales on secondary markets.
XRP Price: Bullish Sentiment Meets Technical Risk
XRP recently climbed to a multi-year high of $3.65 in July 2025, marking its strongest price in nearly seven years.
But the rally was met with selling pressure as profit-taking set in, dragging the price back down to the $2.80 range. Currently, XRP is trading around $3.05, showing signs of resilience but also technical caution.
Crypto analyst Ali Martinez recently flagged a worrying signal, the MVRV Ratio of XRP has flashed a death cross, which typically indicates the possibility of a market correction.
The MVRV Ratio compares the market cap with the realized cap to assess whether holders are in profit or loss. When it falls below its 200-day moving average, it often suggests that selling pressure could rise.
Despite that, others like Trader Henry highlight a more optimistic scenario. He observed that XRP is forming its largest bullish pennant to date, supported by a series of strong green candle closes.
If a breakout happens, he argues that XRP could target the $4 mark, especially if ETF news acts as a catalyst.
Read more about XRP:
XRP to USD: Convert Ripple to US Dollar
XRP (XRP), Market Cap, Price Today & Chart History
Network Developments: Ripple’s CTO Steps In
Adding to the intrigue, Ripple CTO David Schwartz recently announced that he is launching a new independent infrastructure project for the XRP Ledger. The initiative includes a standalone server designed to strengthen validator support and XRPL applications.
This new development is expected to enhance network resilience and efficiency, which are critical attributes for long-term blockchain credibility, especially if an ETF were to bring new attention to XRP’s utility.
Infrastructure upgrades, such as the one proposed by Schwartz, could improve investor confidence and make XRP more appealing for institutional platforms.
Can XRP Reach $5 or More in 2025?
Optimistic analysts believe that if the ETF approval occurs, combined with technical momentum and improved sentiment, XRP could push above the $5 level.
On-chain data also shows a renewed interest in XRP derivatives, with a recent 5% price surge linked to an increase in Open Interest (OI), currently standing at $7.5 billion.
But skeptics warn that XRP’s tokenomics may hold it back from reaching double-digit prices soon. With a circulating supply of 59 billion tokens and a market cap already exceeding $175 billion, XRP lacks the scarcity that drives Bitcoin’s exponential growth.
A move to $10 would require the market cap to rise above $590 billion, more than triple its current size and higher than Ethereum’s current valuation.
In short, the XRP ETF 2025 narrative might boost short-term prices, but structural limitations still remain. Sustainable growth will likely depend on a combination of ETF approval, improved network infrastructure, and consistent institutional inflows.
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FAQ
What is behind XRP's 5% jump?
The recent price increase is driven by positive legal news for Ripple and increased enthusiasm from investors. A high volume of activity from large holders and growing adoption of XRP for payments are also contributing to the positive trend.
Can the Ripple coin reach $5 soon?
A target of $5 is possible if the current momentum continues and XRP breaks through key price barriers. However, regulatory risks or a market downturn could slow its progress.
Is XRP moving independently from other cryptocurrencies?
XRP's recent surge suggests that it is moving independently from the broader crypto market. This is likely due to Ripple's specific use case. Some, however, see this as a temporary spike rather than a long-term trend.
Is this 5% gain just a "dead cat bounce"?
The gain could be short-lived if there is a sudden increase in selling, given XRP's history of volatility. However, strong buying activity and community excitement suggest that the rally might last.
What is the general sentiment around XRP's $5 target?
Supporters are optimistic about Ripple's partnerships and regulatory clarity, which they believe will help it reach $5. Skeptics, however, are doubtful, citing various risks.
Disclaimer: The content of this article does not constitute financial or investment advice.
