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- Spot XRP Exchange Traded Fund (ETF) approvals are expected to be witnessed in October, creating bullish reactions around the asset.
- An XRP ETF approval is said to create shortages in exchange reserves and set the price up for an upsurge.
October (Uptober) is fast approaching, and the price of XRP is already reacting in anticipation of a massive upsurge linked to some key events. According to market data, the price of XRP has surged by 4% in the last 24 hours and 3% in the last seven days.
Its daily trading volume has also increased by 32% while the price hovers around the $2.9 level.
What to Expect in October
In our previous update, we reviewed a report by Bloomberg ETF analyst Eric Balchunas, indicating that October could see multiple ETF approvals in the US.
According to that post, the XRP ETFs filed by Grayscale, 21Shares, Bitwise, and Canary could receive approvals between October 16 and October 24. Also, the ones filed by WisdomTree, CoinShares, and Franklin Templeton could receive approvals by October 25. Fascinatingly, Balchunas and his colleague James Seyffart have fixed XRP ETF approval odds at 95%, as noted in our earlier post.
Crypto enthusiast Kenny Nguyen also made a similar comment:
Over 90 crypto ETFs are pending approval in the US. And XRP ETFs’ deadlines are in October. We are next to go!
According to analysts, an XRP ETF approval could create a supply shock. Already, the XRP reserve on Coinbase is reported to have declined to almost 100 million, representing a 90% fall in recent months.
In June, 60 wallets were spotted on the exchange. As of September 16, only six wallets were remaining, each holding around 16.5 million XRP. Reports disclosed that Coinbase’s XRP reserve has fallen by 264 million (72%) in the last 30 days. With this in play, a potential approval of XRP ETF could cause an interesting interplay between retail and institutional investors to push up the price.
How the Price of XRP Could be Determined Post ETF Approval
According to experts, an approval would imply that spot ETFs hold the underlying asset. Meanwhile, retailers are reported to be holding XRP for the long term. For institutions to have access, it is reported that they would have to convince the retailers by declaring their willingness to purchase at a higher price. In this case, supply on exchanges would be limited.
Confirming this remark, analyst Jake Claver has hinted that the same scenario would apply to other altcoins, including Hedera, Solana, and Litecoin. For XRP, many investors are said to have purchased it between $0.3 and $3.
Fascinatingly, many are willing to maintain their positions until the price reaches $10 or even $25. In the first 30 days after the ETF approval, Claver expects an inflow of $5 to $8 billion. As highlighted in our earlier discussion, JPMorgan also believes that $4 to $8 billion in inflows could be attracted by the XRP ETF in the first year.
In the long run, experts believe that XRP could rise to $10. This has been confirmed in our earlier publication, which hints at a bullish reversal based on an Elliott Wave Structure.
