XRP ETF Approval Could Propel Prices to $1,000 Amid Institutional Interest

Approval of an XRP exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) could be a game-changer for the cryptocurrency, potentially attracting significant institutional investment.

Analysts are optimistic about the possible price impact, with some suggesting that XRP could eventually reach as high as $1,000 if an ETF is greenlit. They argue that new investment from such funds could fuel major price rallies, similar to what was observed with Bitcoin ETFs.

There is speculation that asset managers, like Bitwise and Canary Capital, could accumulate large quantities of XRP for these funds, leading to increased demand and a potential supply crunch. Historical data shows that spot Bitcoin ETFs currently manage billions in assets, indicating that even a fraction of this interest in XRP could have a meaningful impact on the market.

In the short term, reaching its previous peak of $3.84 may be a more realistic target, especially if the ETF approval follows a similar trajectory to Bitcoin’s price surge after the launch of spot Bitcoin ETFs.

Unlike Ethereum, which faced selling pressure from its Grayscale funds, XRP might not encounter the same obstacles, as its Grayscale trust holds only a modest amount in assets.

The ongoing legal developments involving the SEC’s appeal in the Ripple case could also play a role in shaping the timeline for any ETF approval. If the regulator decides not to challenge XRP’s status as a non-security, Bitwise and Canary Capital could soon see their applications advance.