Expert Opinions Diverge on Large Asset Manager involvement
Interest in a Ripple (XRP) exchange-traded fund (ETF) is exploding, with Google searches for “XRP ETF” skyrocketing 733% over the past month, signaling growing anticipation within the cryptocurrency investment community. This surge comes as Ripple’s long-running legal battle with the U.S. Securities adn Exchange Commission (SEC) nears a potential resolution, fueling optimism about the possibility of ETF approval.
According to data cited by cryptocurrency media outlet Finbold, the Google Trends score for “XRP ETF” jumped dramatically from 12 on July 10th to a perfect 100 on August 10th. This represents a massive increase in investor curiosity and potential demand.
Canada led the search volume, followed by the United States, South Korea, Singapore, and Israel.The heightened interest is directly linked to the progressing legal proceedings between ripple and the SEC, and the expectation that resolving the legal uncertainty surrounding XRP could expedite the ETF approval process.
A key development driving this optimism is the mutual agreement between Ripple and the SEC to withdraw outstanding appeals, aiming to establish regulatory clarity. Industry analysts believe this move substantially smooths the path for potential ETF approvals.
Bloomberg ETF analyst Eric Balchunas continues to maintain a high probability of approval, currently at 95%, despite a slight dip in predictive market forecasts. However, data from PolyMarket indicates the probability of XRP ETF approval this year has fallen slightly to 77%, down from 80%.
While enthusiasm is building, some experts remain cautious about the involvement of major asset managers. nate Zerashi, CEO of The ETF Store, suggests it’s unlikely that giants like BlackRock will immediately launch XRP ETFs, focusing initially on Bitcoin and Ethereum.
Despite this, the world’s frist in-kind XRP ETF, launched by Brazilian asset manager hashdex, has demonstrated promising performance. It closed at $5.00 on August 8th, representing a near 7% gain in trading, and has increased over 40% since its April launch. This early success provides a positive indicator for potential future XRP ETFs.
The price of XRP has experienced recent short-term fluctuations, currently trading at $3.10, a more than 4% increase from the previous day.
Finbold reports that experts predict ETF approval will likely trigger important capital inflow, potentially driving XRP towards a future target of $5.00. The combination of legal progress, growing investor interest, and the performance of the Hashdex ETF creates a potentially bullish outlook for XRP in the coming months.
