Several XRP ETF applications have their deadlines this week, drawing significant attention from investors across the market. If XRP ETF approval comes through, the cryptocurrency could experience a rapid price surge, potentially jumping 50-150% within days or weeks. Currently trading around $0.55, XRP’s price could reach $4-$6 by the end of the year.
### Why Could XRP Price Surge?
Approval of an XRP ETF would open the doors for massive inflows from Wall Street, including pensions, 401(k)s, and large managed funds. Investors wouldn’t need to buy XRP directly on exchanges, making it easier for billions to enter the market.
Historical patterns from Bitcoin and Ethereum ETFs show that such approvals can quickly drive prices up. Analysts predict that XRP could see $3-5 billion in inflows during the first month alone, potentially doubling its price.
Major institutions like BlackRock, Fidelity, and Vanguard have already filed for XRP ETFs. Once approved, these funds could rush in, creating a “FOMO” (fear of missing out) effect, where more investors buy simply to avoid missing out on potential gains.
Because XRP has a smaller market cap than Bitcoin, even relatively smaller inflows could result in bigger percentage jumps.
### Institutional Support and Regulatory Impact
XRP ETF approval would also remove a significant barrier: the long-standing SEC lawsuit against Ripple. This “lawsuit coin” stigma has held back some investors, but regulatory approval would signal safety, attracting both retail and institutional buyers.
Ripple’s network of over 300 banks—including Santander and SBI—could increase XRP usage, potentially multiplying trading volumes well beyond the current $2 billion per day.
### Delays in XRP ETF Approval
The U.S. government shutdown is currently the main obstacle. The SEC is unlikely to approve any ETFs until the government reopens, potentially delaying XRP ETF approval.
However, when approval does occur, all XRP ETF applications are expected to be greenlit simultaneously, similar to how Bitcoin and Ethereum ETFs were handled previously.
### Potential Risks
Some risks remain, including early investors selling portions of their holdings, which could cap short-term gains. Additionally, broader market downturns may limit price jumps to around 50% instead of doubling or tripling.
### Outlook
Experts see a high probability of XRP ETF approval, which could result in a 2x to 4x price growth for XRP by year-end. Historical ETF approval patterns combined with XRP’s current setup suggest this outcome is a realistic scenario rather than mere speculation.
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**Also Read:** Institutions Compete for XRP Ahead of Ripple SWELL Event
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### FAQs
*Q: What is an XRP ETF?*
A: An XRP ETF (Exchange-Traded Fund) is a fund that tracks the price of XRP and trades on traditional stock exchanges, allowing investors to gain exposure without directly buying the cryptocurrency.
*Q: How would XRP ETF approval impact investors?*
A: Approval would make it easier for institutional and retail investors to access XRP, potentially driving significant inflows and price increases.
*Q: Why is the SEC lawsuit against Ripple significant?*
A: The lawsuit has created uncertainty and hesitation among investors. Resolution or regulatory approval will likely remove this stigma and encourage greater investment.
*Q: What are the risks associated with XRP price surges?*
A: Risks include government delays, market downturns, and early investor sell-offs that could limit upside potential.
Stay tuned for updates as XRP ETF deadlines approach and the market reacts.
https://coinpedia.org/news/xrp-etf-approval-date-nears-prices-expected-to-soar-2x-4x-by-year-end/