In mid-July, amid the excitement of the crypto community for "Crypto Week" in Washington, XRP made a surprising breakthrough, reaching a 52-week high of $3.65 – just a few cents shy of its all-time high of $3.84.
This has led many investors to believe that the question is no longer "Will XRP surpass $4?" but rather "When?"
According to numerous forecasts, XRP's price may reach $4 before October 1. The reason? An important event in October could change investors' outlook on XRP.
Spot XRP ETF – A New Opportunity for XRP
Currently, Bitcoin (BTC) and Ethereum (ETH) are the only two cryptocurrencies that have instant exchange-traded funds, which are investment funds that mimic the prices of real assets by directly purchasing the underlying asset. However, this situation is likely to change very soon.
Many major financial institutions have submitted applications to launch the Spot XRP ETF, and the Securities and Exchange Commission is expected to make a decision between October 18 and 25.
Especially:
Grayscale: Decision 18 October
21 Shares: Decision on October 19
Bitwise: Decision Date 20/10
If the SEC adopts a similar strategy when approving the Spot Bitcoin ETF and Spot Ethereum ETF, it is likely that they will approve all of them at once or postpone all of them for further review.
Notably, according to some sources, the SEC may be able to expedite the timetable and approve it as early as September due to recent regulatory changes.
Why is the Spot XRP ETF important?
With a market capitalization of approximately $180 billion, XRP is currently the third largest cryptocurrency in the world, after Ethereum ($440 billion) and Bitcoin ($2.3 trillion). XRP represents about 5% of the total market value of cryptocurrencies.
This volume makes XRP an attractive target for institutional investors – a group that tends to invest heavily in assets that already have ETFs.
According to JP Morgan, the launch of the Spot XRP ETF alone could help XRP attract up to $8 billion in new capital between now and the end of 2025.
This buying pressure is expected to boost XRP prices, especially as we approach October 18 – the date of the SEC's ruling.
There are already a number of exchange-traded funds linked to XRP in the market, but they are not instant ETFs. Instead, they use derivative contracts to simulate the price of XRP. Nevertheless, the demand for these funds has been enormous, indicating the potential for significant increases once the instant XRP ETF is officially launched.
ETFs or buying XRP directly – which is the better option?
For institutional investors, instant ETFs are an ideal option for the following reasons:
Ease of trading through traditional brokerage accounts
Simpler asset management and custody
Compliance with legal and financial reporting requirements
However, for individual investors, the question is:
"If you already have an account on Coinbase or any other cryptocurrency exchanges, why not buy XRP directly?"
Exchange-Traded Funds (ETFs) provide you with financial exposure to the price of XRP only, but they do not grant you ownership of the asset itself. If you want full control, buying and storing XRP directly is a good option.
Additionally, BlackRock – the leading company in the market for instant cryptocurrency ETFs – currently has no plans to launch the Spot XRP ETF, leading some investors to prefer buying XRP directly rather than through an ETF.
Conclude
If things go well, XRP's price could exceed $4 before Q4 2025.
The Spot XRP ETF event not only provides great opportunities for XRP, but it can also serve as a milestone that changes the way traditional finance views this asset.
For investors, the question is not just "Will XRP's price exceed $4?" but also "How will you hold XRP?" – directly or through an exchange-traded fund.
In any case, it is possible that XRP could experience significant waves – and those who are prepared will be the first to benefit.