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    XRP ETF Approval Hopes Rise Under New SEC Chair Paul Atkins

    Story Highlights
    • XRP ETF approval nears as liquidity and market depth surge, boosting investor confidence in Ripple’s growing institutional ecosystem.

    • Six spot XRP ETF filings, including Grayscale and Bitwise, await SEC review—potentially reshaping the crypto ETF market in 2025.

    The race for crypto ETFs is heating up, and XRP is once again in the spotlight. With Paul Atkins taking over as the new Chair of the U.S. Securities and Exchange Commission (SEC), investors are hopeful for a more crypto-friendly stance. 

    Multiple asset managers have already submitted ETF applications, and with key SEC ETF approval deadlines approaching, both the XRP ETF and the Solana (SOL) ETF are emerging as leading contenders due to their growing liquidity and rising investor interest.

    Why Market Depth Matters for XRP ETF Approval

    Unlike trading volume, which only reflects the amount traded, market depth measures how much can be bought or sold without significantly impacting price. Analyst WrathofKahneman explained that for ETF approval, market depth is even more critical than volume, as it ensures stability during large-scale trades.

    A Kaiko report from April revealed that XRP and Solana (SOL) lead in 1% market depth among major exchanges, while Cardano (ADA) follows closely. This deep liquidity strengthens XRP’s ETF case, indicating smoother trading and reduced volatility. If approved, ETFs that physically hold XRP would boost liquidity further through the constant creation and redemption of ETF shares, enhancing price stability.

    Ripple’s $1.25 billion acquisition of Hidden Road, a key digital asset brokerage, adds significant institutional depth to XRP’s ecosystem. This strategic move increases XRP’s appeal for large-scale investment products like spot XRP ETFs, reinforcing its market positioning among institutional investors.

    Despite optimism surrounding XRP ETF approval, overall market sentiment remains cautious. Deribit options data shows traders hedging for downside risks, suggesting short-term uncertainty. Additionally, China’s 125% tariffs on U.S. goods have heightened global financial tension, further weighing on risk appetite.

    Upcoming XRP ETF List 

    A decisive week lies ahead for XRP. Six spot XRP ETF applications are set for review between October 18 and 25, including Grayscale’s ETF, whose SEC decision is expected this week. 

    Other filings from 21Shares, Bitwise, WisdomTree, CoinShares, and Canary Capital are also queued for review next week. These rulings will mark a turning point for XRP’s regulatory outlook, potentially reshaping the crypto ETF landscape.

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    FAQs

    What is an XRP ETF and why is it important?

    An XRP ETF is a fund that tracks XRP’s price, allowing investors to gain exposure without directly holding the crypto. It’s important as it provides easier, regulated access for mainstream and institutional investors.

    When will we know about the XRP ETF decision?

    Key SEC decisions on several spot XRP ETF applications are expected between October 18 and 25, 2024, starting with a ruling on Grayscale’s filing this week.

    What are the benefits of a spot XRP ETF?

    A spot XRP ETF offers security through regulated custodians, simplifies investing via traditional brokerage accounts, and enhances market liquidity and price stability for all holders.

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