What is XRP ETF?

ETF (Exchange Traded Fund) is an open-end fund that is publicly traded on an exchange and tracks the price of underlying assets. The so-called “XRP ETF” packages the price performance of spot XRP into fund shares, allowing investors to buy and sell this fund in the secondary market and indirectly gain from XRP price fluctuations. Compared to directly holding the currency, the XRP ETF has the following advantages:

• Simplified operating process: No need to manage digital wallets and exchange accounts by yourself, you can buy and sell like stocks in a securities account;
• Compliance Custody: ETFs are held by professional custodians with XRP, reducing the risk of personal private key loss and security risks;
• Institutional investment channels: Traditional institutional funds can more easily enter the market through ETFs, increasing the marginal effect of capital scale.

Currently, several asset management institutions (such as Grayscale, Bitwise, 21Shares, Canary Capital, etc.) have submitted applications for spot XRP ETFs and have officially received acceptance of the SEC’s 19b-4 filings. As of mid-February 2025, the SEC has published relevant announcements in the Federal Register, with a public comment period of 21 days. If there is no significant negative feedback, the SEC will make a decision on approval after the comment period ends.

Current XRP legal and regulatory dynamics

1. Phase progress of the SEC lawsuit
   In July 2023, a favorable ruling was made by the U.S. District Court for the Southern District of New York regarding Ripple, determining that the public sale of XRP does not constitute a security; however, actions involving institutional placements or financing may still be regarded as a securities issuance. In October 2024, the SEC officially withdrew some charges against Brad Garlinghouse and Chris Larsen, leading to a general easing of the lawsuit.
2. ETF approval process
   In February 2025, multiple spot XRP ETF applications were officially filed. The SEC published the 19b-4 document submitted by Grayscale/NYSE Arca in the Federal Register on February 13, seeking public feedback from the market. Other institutions (WisdomTree, Bitwise, 21Shares, Canary Capital) are also waiting for approval. If the SEC approves, it will open the door for institutional investment, expected to bring in hundreds of millions of dollars in incremental funding.
3. Global regulatory environment
   Europe is advancing the MiCA regulatory framework, clearly incorporating cryptocurrencies like XRP into the legal system; some Asian countries (such as Japan and South Korea) hold a relatively positive attitude towards XRP, with several financial institutions piloting the use of XRP in international settlements. If the regulation in major global markets becomes clearer, the legality and application scope of XRP will be further expanded.

Latest Price and Market Sentiment Analysis

Figure:https://www.gate.com/trade/XRP_USDT

As of June 4, 2025, the current price of XRP is approximately $2.19. , a significant decline from the peak of $2.70 in early May. On the technical front, XRP is in a narrow fluctuation pattern:

• Moving Average Distribution: The 10-day and 20-day moving averages are in the range of $2.16 to $2.20, showing a sideways trend; the 50-day moving average is near $2.30, and the short-term moving averages have not yet formed a golden cross, indicating insufficient upward momentum.
• Volume change: Recent daily average trading volume has decreased, indicating a strong wait-and-see sentiment in the market; if this can be accompanied by an increase in volume in the future, it is expected to drive prices to break through resistance.
• Momentum Indicators: MACD is converging near the zero line, with a short-term standoff between bulls and bears; RSI is oscillating around 50, with no obvious overbought or oversold signals.

From an emotional perspective, several analysts believe that once the XRP ETF is approved, institutional funds will quickly flood in. According to calculations by the CryptoCompass platform, if the ETF attracts $400 million to $800 million in its first year, the price of XRP is expected to break through $3.00; however, if the approval is denied, it may trigger short-term selling pressure, causing the price to drop to the range of $1.80 to $2.00.

Future Price Expectations and Institutional Views

1. Optimistic expectations

- ETF driven: If the ETF is approved and attracts $500 million to $1 billion in net inflows in the first year, the price of XRP is expected to break $3.50 to $4.00;
- Global Application Expansion: As the compliance status of XRP is clarified in markets such as Japan and Europe, the number of payment pilot projects increases, and demand continues to strengthen.
- Network Upgrades and Ecosystem Development: XRP Layer 1 is advancing the XLS-30D upgrade, which, if successfully launched, will enhance cross-chain interoperability and liquidity, attracting more developers to build the ecosystem.

1. Conservative expectations

- Macroeconomic and cryptocurrency market risks: If the Federal Reserve maintains high interest rates, the overall liquidity of crypto assets will be tight, and XRP may struggle to stand out on its own;
- Regulatory Uncertainty: If the SEC delays approval or imposes stricter compliance requirements, the ETF process will be delayed, which will suppress short-term market expectations;
- Increased market competition: Other Layer 1 ecosystems (such as Ethereum and Solana) are highly active, which may divert attention and funds.

Comprehensive predictions from multiple third-party institutions suggest that by the second half of 2025, the price of XRP is expected to fluctuate in the range of $3.00 to $5.00, with a possibility of approaching $6.00 in case of extreme positive news; however, if there are significant negative impacts from macroeconomic factors or regulations, it could drop below $2.00.

Practical Advice for Beginner Investors

1. Pay attention to key developments in ETF
   Regularly pay attention to SEC announcements and market feedback dynamics, with a focus on the end of the comment period (around late March 2025) and the SEC’s final ruling;
2. Moderate staggered allocation
   Positions can be divided into two parts: long-term holding and swing trading. Long-term layout can be in the range of $2.10 to $2.20, while short-term swings can focus on the range of $2.30 to $2.50.
3. Risk Control
   It is recommended to set reasonable stop-loss levels. For example, if the price drops below $2.08 and does not quickly rebound, consider reducing your position; if it breaks above $2.26 with increased trading volume, you may consider increasing your position moderately.
4. Diversification of information sources
   In addition to following cryptocurrency media and exchange announcements, you can subscribe to Ripple’s official announcements, SEC bulletins, CoinMarketCap, and other price tracking websites to stay updated with the latest information.
5. Learn basic technical analysis and application scenarios
   Understand support and resistance, trading volume, and momentum indicators, while paying attention to actual cases of XRP in areas such as cross-border payments, DeFi, and CBDCs, to help judge price fluctuations and value support points.