According to data from Polymarket, a decentralized prediction platform, the likelihood of an XRP Exchange-Traded Fund (ETF) receiving approval in 2025 has climbed to 70%.
The significant surge in confidence comes just four days after the poll was launched, reflecting growing optimism among the crypto community. In the last 24 hours alone, the odds have jumped by an impressive 20%, marking a sharp uptick in anticipation for this milestone.
Market Bets Favor XRP ETF
The recent surge in confidence stems from aggressive betting by community members, who see the approval of an XRP ETF as increasingly probable this year.
Some participants even predict that by the end of the first quarter, the odds of approval could reach 100%, underscoring the bullish sentiment surrounding this development.
Fueling this optimism is the arrival of a more crypto-friendly U.S. government and the appointment of Paul Atkins as the pro-crypto chairman of the SEC. Under Atkins’ leadership, the regulatory climate is expected to shift favourably, increasing the chances of ETF approvals.
The SEC is currently reviewing four applications for XRP ETFs, which could help Ripple’s native token gain broader acceptance.
Broader Altcoin ETF Expectations
Bloomberg ETF analyst Eric Balchunas has also weighed in, forecasting the launch of new altcoin ETFs in 2025. He expects products tracking cryptocurrencies like Litecoin, Hedera, Solana, and XRP to emerge as the year progresses.
Balchunas emphasized that the new leadership at the SEC is a critical factor in driving these approvals, particularly for XRP and Solana ETFs.
Also Read: Ripple’s $RLUSD Token Receives Final Approval for Exchange Listings
The adoption of altcoin ETFs is regarded as an important step towards closing the gap between traditional finance and the cryptocurrency sector.
It would enhance liquidity and attract institutional investors who seek regulated avenues for crypto investments.
XRP Price Rally and Market Trends
The growing optimism around the XRP ETF coincides with Ripple’s price rally. XRP recorded gains for three consecutive days as Bitcoin and other altcoins rebounded on the first trading day of 2025.
As of now, XRP is the third-largest cryptocurrency, boasting a market capitalization of $138.82 billion. It is trading at $2.42, reflecting a 1.85% increase in the past 24 hours.
However, the 24-hour trading volume has dropped by 42%, suggesting a possible pause in trading activity despite the price uptick.
Implications for the Crypto Market
The rising odds of an XRP ETF approval signal a broader shift in the cryptocurrency landscape. Should these predictions materialize, it would mark a pivotal moment for Ripple and the industry at large, potentially driving further institutional adoption.
As the crypto market continues to evolve, the approval of XRP and other altcoin ETFs could set the stage for a new era of financial innovation, providing investors with more diversified options and solidifying cryptocurrencies’ place.
Also Read: Crypto Analysts Ali Martinez Goes Bullish On XRP, Predicts $11 For 2025