Key Takeaways
- XRP garnered $6.7M in weekly inflows when the SEC signaled its withdrawal of the appeal, reigniting hopes for US XRP-spot ETF approval.
- The odds of an XRP-spot ETF approval jumped from 57% in January to 86%, up from 57%, fueling bullish momentum and investor interest.
- Ripple CEO Brad Garlinghouse warned investors they could underestimate the impact of pro-crypto legislation in the US market.
The recent dismissal of the US Securities and Exchange Commission’s (SEC) suit against Ripple has improved legal certainty, and rumors about a possible XRP ETF have raised institutional interest in XRP, thereby indicating potential upside momentum That could lead to a price breakout.
According to experts, the acceptance of an XRP ETF would cement XRP’s position as a significant digital asset that could urge the token towards a major price breakout. Questions now linger about the possibility of it happening soon. The latest Weekly Asset Flow report by Coinshares notes that the broader crypto market garnered net inflows of $6.7 million in the week ending March 21, the first such inflow in the last six weeks. Nonetheless, the monthly outflows remained high at $548.8 million.
Institutional Demand for XRP Will Rise Significantly
A crypto betting platform Polymarket report revealed the chances of an XRP-spot ETF being approved by December 2025 had increased from 57% in January to 86% in March 2024, attributing the rising inflows to the increasing bets. Should the ETF filing gain favorable regulatory approval, Edo Farina, the founder of Alpha Lions Academy, foresees that institutional demand for XRP will rise significantly. Farina said:
“XRP Supply Shock will happen quickly and abruptly. Prepare now or cry later.”
According to Farina in a 2014 Ripple paper outlining the potential effect of institutional adoption on the XRP Ledger (XPRL), the effect would supply shock as adoption boosts the token’s demand. This rising demand for Ripple’s products could efficiently fuel the looming XRP rally. Commenting on the significance of the legal clarity amid an emerging US regulatory landscape, Ripple CEO Brad Garlinghouse stated:
“As I said today on Mornings Maria, we are UNDERESTIMATING what it means to unlock the US market through upcoming crypto legislation as well as previous guidance/statements rescinded from the SEC and OCC allowing FIs to work with crypto. With 4+ years of headwinds behind us – the US is ready to reclaim its leadership position.”
Follow In the Footsteps of The Bitcoin And Ethereum ETFs
As XRP breathes a sigh following the dropping of the long-standing suit and clearing regulatory ambiguity, experts believe that investors will now see the token as a more suitable long-term investment, thereby raising its market involvement. The regulator’s decision supports Ripple’s position that the token isn’t a security and opens the way for legal clarity and greater institutional acceptance.
There are high hopes within the crypto market that an XRP ETF could follow in the footsteps of the Bitcoin and Ethereum ETFs, which have had several investors include them in their institutional portfolios. According to expert predictions, if it happens, the decision would drive institutional inflows, leading to improved liquidity and enhancing the token’s market position.
Conclusion
The legal certainty surrounding Ripple and XRP has helped the token gain a positive sentiment within the crypto industry. In addition to drawing intuitional attention, it is already driving hope towards the potential approval of an XRP ETF. The approval of an XRP ETF could lead to mainstream acceptance and substantial liquidity. The great question now is whether price consolidation will persist before the next big move or whether XRP will be able to maintain its momentum and surpass significant resistance.
Frequently Asked Questions (FAQs)
Did XRP win the court case against the SEC?
In July 2023, US District Judge Analisa Torres gave Ripple and the agency each a partial win, ruling that the sale of XRP on public exchanges didn’t violate federal securities laws but that XRP was a security when sold to institutional investors.
Would the price of XRP go up if they win a lawsuit?
With the lawsuit behind it, XRP’s next big move will depend on real-world adoption. Experts believe institutional investment, significant partnerships, and growing use cases such as cross-border payments would be the key drivers of price growth.
What would happen to XRP if they lost a lawsuit?
In the event of a guilty verdict, Ripple’s reputation would be severely damaged, which could cause the XRP price to fall sharply.
