Ripple’s native cryptocurrency, XRP, is experiencing a notable upswing after a prolonged downturn, with its price climbing more than 5% over the past week to trade just above $3. This resurgence is largely being driven by growing optimism among traders about the potential for U.S. Exchange-Traded Fund (ETF) approvals, which could see XRP’s value reach $4-$5 by the end of the year.
Analysts have identified a shift in market sentiment, with capital rotating from established cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) into altcoins with strong near-term catalysts. Citing options data, B2BinPay noted a clear preference for XRP, evidenced by December call options trading significantly higher than puts. This trend suggests market confidence is building on expectations of a potential U.S. ETF approval, which could trigger substantial capital inflows and propel XRP’s price higher.
In contrast, Bitcoin and Ethereum are showing a more cautious, defensive stance in their options markets. This is reflected in higher prices for put options, indicating traders are hedging against potential downside. This behavior aligns with a recent slowdown in ETF flows for these major assets, coinciding with broader economic concerns and profit-taking.
Further supporting the bullish outlook, betting platform Polymarket currently places the odds of an XRP ETF being approved by the end of 2025 at 93%.
Beyond the ETF narrative, Ripple’s recent expansion in Spain is also contributing to the positive sentiment. The company announced a new partnership with the Spanish bank BBVA to integrate its self-custody solution, Ripple Custody, into the bank’s recently launched crypto trading and custody services. This collaboration allows BBVA to securely manage and offer tokenized assets, including BTC and ETH, while ensuring regulatory compliance, underscoring Ripple’s continued focus on institutional adoption.
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