Interest in the potential US approval of a spot XRP exchange-traded fund (ETF) has reached unprecedented levels. Polymarket, a prediction market platform, reveals an increase in approval likelihood from 70% to 90% recently, highlighting a growing optimism for an XRP spot ETF. Meanwhile, the US Securities and Exchange Commission (SEC) has extended its review period for Franklin Templeton’s proposal, with a public commentary phase further delaying the decision. On the other hand, Canada is leading in the XRP ETF space, benefiting from a proactive regulatory framework.
What Is Driving US XRP ETF Optimism?
Polymarket’s high trading volumes, surpassing $95,000, support the probability of a spot XRP ETF being approved. The platform’s adeptness at reacting to regulatory developments and market trends provides crucial insight into the expectations of market participants.
A spot XRP ETF approval would enable trading on conventional exchanges, simplifying access for investors by removing the need for digital wallets. This accessibility could appeal to institutional investors traditionally hesitant about direct cryptocurrency investments.
How Does Canada Stand Out in the XRP ETF Arena?
While the US postpones decisions, Canada has forged ahead in the ETF arena. Purpose Investments, 3iQ, and Evolve have successfully obtained approvals from Canadian regulators, ensuring they remain leaders in the XRP ETF market.
Purpose Investments has even introduced a zero-fee spot XRP ETF, available until February 2026, marking a pioneering move in the market that has attracted considerable assets under management.
Canada’s regulatory clarity has facilitated the swift introduction of real-world ETF products, while indecision in the US hampers comparable advancements, indicating the varied regulatory environments worldwide.
XRP Prices Defy Market Volatility
Despite fluctuating market conditions, XRP prices exhibit notable stability. Over a brief period, long position liquidations surged by over 8,466% compared to short positions, resulting in $508,000 being liquidated in the futures market.
Yet, the XRP price remained stable, with only a slight 0.20% rise, signaling the robust support of large institutional investors in the spot market amid growing ETF approval anticipation.
The sustained strength in XRP pricing underscores increasing institutional engagement, affirming the cryptocurrency’s resilience and depth within the broader market framework.
