XRP Price Drops, but ETF Approval Could Ignite a Massive Rally

The price of XRP has seen a slight downturn following a recent surge, but optimism remains high as traders eye potential approval of an exchange-traded fund (ETF) linked to the cryptocurrency.

On Monday, XRP recorded a 1.2% decline, trading at $2.72 in early market activity, as per data from Kraken. Despite this minor pullback, the token remains on an upward trajectory, having gained approximately 12% over the past week.

Investor sentiment has been buoyed by growing anticipation that the U.S. Securities and Exchange Commission (SEC) may approve an XRP-focused ETF. This speculation gained traction after the SEC acknowledged an application filed by the New York Stock Exchange on behalf of crypto asset manager Grayscale. The regulatory body has now opened the proposal for public comment, with a final decision expected later this year.

A green light for an XRP ETF could significantly impact the asset’s market dynamics. Institutional investors, who often seek regulated investment vehicles, would gain exposure to XRP without direct ownership, potentially increasing demand and liquidity. A similar effect was observed last year when the SEC approved Bitcoin ETFs, propelling the leading cryptocurrency past the $100,000 milestone.

With regulatory developments in motion, all eyes are now on how the SEC will respond to this latest ETF proposal. If history repeats itself, an approval could provide the catalyst needed for XRP to break new price barriers in the coming months.