XRP Price Surges Amidst SEC Shutdown: What’s Next for XRP ETFs?
XRP, the popular cryptocurrency, is currently trading just above $3.30, marking a significant gain of more than 9% in the past 24 hours. This rally comes at a time when the U.S. government shutdown has frozen the Securities and Exchange Commission (SEC), putting a pause on all progress related to pending spot XRP ETF applications. Despite this setback, analysts believe that the lack of movement is not due to rejection but simply because there are no staff available to review or approve filings.
There are currently six active XRP ETF proposals from Grayscale, 21Shares, Bitwise, WisdomTree, Canary Capital, and CoinShares. Once the SEC resumes operations, multiple approvals could be issued simultaneously, similar to the wave of Bitcoin ETF approvals earlier this year.
Canary Capital CEO, Steven McClurg, has made bold predictions regarding the potential success of XRP ETFs. In a recent interview with Paul Barron, he reiterated his initial forecast of $5 billion in inflows within the first month. However, he now believes that this number could soar as high as $10 billion.
McClurg cited the success of the first Bitcoin futures ETF, which garnered over $1 billion on its first day, as a benchmark for XRP ETFs. He anticipates that XRP ETFs could see inflows of $2–3 billion on day one, potentially ranking among the top 20 ETF launches of all time.
The future of XRP also depends on regulatory clarity. The SEC and CFTC have begun joint discussions on crypto oversight, signaling a step towards unified U.S. regulation. Former SEC commissioner Paul Atkins has advocated for an “innovation exemption” to expedite digital asset approvals, a move that could benefit XRP directly.
As for XRP’s price prediction, the cryptocurrency is currently facing resistance around the $3.10–$3.15 range. Repeated rejections at this level indicate that sellers are active in this zone. On the downside, key support levels are at $2.93–$2.94 and $2.70–$2.80, with the latter triggering several rebounds in recent months.
In conclusion, XRP’s price surge amidst the SEC shutdown highlights the potential for significant growth once regulatory clarity is achieved. With the possibility of record ETF inflows and a supportive regulatory environment, XRP’s future looks promising.
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