XRP ETF Race: 7 Firms File, Analyst Sees 'Good Sign'
Key Takeaways
- Seven issuers updated spot XRP ETF filings, coinciding with the approved Ripple-SEC case dismissal.
- Whale activity suggests expectations of a further XRP rally.
On August 22nd, several issuers submitted amended U.S. spot XRP ETF filings after the Ripple-SEC case was dismissed.
The filings came from seven issuers: Bitwise, Canary, Coinshares, Franklin Templeton, Grayscale, WisdomTree, and 21shares. They all filed amended S-1 documents.
Bloomberg ETF analyst James Seyffart stated that the updated filings were likely a response to feedback from the Securities and Exchange Commission (SEC). He described the update as a ‘good sign.’
“Almost certainly due to feedback from the SEC. Good sign, but also mostly expected”
Nate Geraci, co-founder of ETF Institute, also underscored the cluster filings as ‘notable’ and a ‘very good sign.’
Ripple-SEC Case Dismissal Sealed
The final dismissal of the Ripple-SEC case provided another boost. The parties applied for a joint dismissal of their appeals, which the Second Circuit approved, resolving the regulatory uncertainty.
CME XRP Futures recently reached record highs, which market observers view as favorable for spot ETF approval.
Bloomberg ETF analysts estimate a 95% probability of XRP ETF approval by October.
According to Amberdata, options traders targeted $4, marking it the second most traded call option after Friday's updates. The most traded instruments were calls targeting $4 for the end of September and December Option expiries. This raises the question: will XRP struggle to surpass $5 even after ETF approval?
XRP price increased by 7% from $2.7 to $3.1 on Friday. However, selling pressure remained muted, particularly among major players.
Whales moved XRP holdings off exchanges, as indicated by the decreasing Whale to Exchange Transactions, highlighting an accumulation trend.
This indicates that whales anticipate XRP to rally further and were not quick to take profits from Friday's upswing.