- With Paul Atkins now leading the SEC, optimism skyrockets as analysts peg XRP spot ETF approval chances at 85%.
- Regulatory easing, lawsuit wins, and leveraged XRP futures trading signal rising institutional interest in broader ETF adoption.
- Analysts predict XRP price could spike near $3.40, driven by ETF momentum and shifting crypto market sentiment.
The chance of spot XRP ETF approval has seen a remarkable increase to 85%, according to ETF expert Eric Balchunas. This increase in confidence has come in the wake of the appointment of Paul Atkins to the role of chair of the U.S. Securities and Exchange Commission (SEC), which has sparked optimism among crypto investors. It is a major shift in approach from the more aggressive regulatory style during Gary Gensler’s chairmanship.
Recent regulatory actions, including loosening of banking restrictions on crypto and positive rulings in lawsuits, have sparked rumors of what is next from the SEC. Now, the crypto space is closely observing, especially where debate is heating up over whether or not XRP will be added to the list of approved crypto exchange-traded funds.
ETF specialists such as Eric Balchunas and James Seyffart opine that the launch of additional altcoin-based ETFs is not a matter of if but when. They project that XRP is likely to be one of the initial non-Ethereum tokens to be approved for a spot ETF on account of its robust market demand and institutional demand.
ETF Momentum Builds After Regulatory Shift
Balchunas asserted that significant action wasn’t likely to be seen before confirmation of Paul Atkins was complete. Having now been confirmed and engaging with external parties according to reports, experts expect the SEC to be setting the stage for approval.
“Nothing was going to get approved until Atkins was confirmed […] he just got confirmed and they’ve been taking outside meetings with people. Probably coming up with a strategy. After that, likely approvals,” Balchunas said.
XRP product momentum was further accelerated following the approval of ProShares’ short and leveraged XRP futures ETFs to launch trading on April 30. While originally reported to be the approval of a spot XRP ETF, from a regulatory perspective, it was perceived to be a sign of regulatory willingness to allow XRP-related products.
Industry experts have predicted a radical change in market dynamics in the event that a spot ETF is approved. It is projected that the move will attract over $100 billion in institutional capital that will give greater legitimacy to XRP and other digital assets in mainstream financial markets.
XRP Price Outlook
Anticipation of ETF approval is also driving bullish sentiment in XRP’s price forecasts. Analysts estimate that such a regulatory win could push XRP’s price to around $3.40, a nearly 50% jump from current levels. Some have even speculated that XRP could challenge Ethereum’s dominance in market capitalization if institutional inflows meet projections.
James Seyffart is still hedging his bets when it comes to timing, observing though that October of 2025 is an important milestone and approvals may drag out later in case of an unfavorable worst-case scenario. The overall drift toward acceptance of cryptos, fueled by ETF desire, still gives momentum to the long-term case of XRP being bullish.
Amid the broader surge in Bitcoin ETF inflows, which have outpaced gold exchange-traded products, XRP could soon benefit from a similar shift in investor preference. This scenario would align with the strategic ambitions of making the United States a global crypto leader.
