Crypto analyst Jungle has revealed what to expect if the SEC approves the XRP ETFs. He predicts that these funds could have a similar effect on XRP, just the way the Bitcoin ETFs did on BTC.
What Happens If The XRP ETFs Get Approved
In an X post, Jungle stated that if a spot XRP ETF is approved, it won’t just give Wall Street investors exposure to XRP but that it will also fundamentally change the altcoin’s market behavior. The analyst then alluded to what happened to Bitcoin after the launch of BlackRock’s Bitcoin ETF IBIT.
He noted that the Bitcoin price has remained volatile but that the assets under management (AuM) for BlackRock’s Bitcoin ETF kept climbing even during every dip. Jungle stated that this means institutions continued to buy the dips and build positions instead of panic-selling. The analyst noted that this accumulation from institutional investors has led to a more stable price action from BTC compared to previous cycles, when it recorded up to 50% collapses.
Jungle noted that a constant inflow of capital has created a structural bid under Bitcoin. The analyst remarked that institutional demand has reshaped BTC into a more mature, stable asset class. Now, he expects a similar tailwind for the XRP price with the XRP ETFs, with every dip met with institutional inflows. The analyst described these inflows as sticky capital that accumulates for the long term instead of fleeing at volatility.
In line with this, Jungle declared that a new floor for the XRP price will be created and that there will be a shift from hype-driven cycles to sustainable, Wall Street-backed growth. He further remarked that the launch of Bitcoin ETFs didn’t just create demand, but it also transformed the market.
The analyst claimed that an XRP ETF could do the same by “rewriting the playbook for XRP’s future. He added that XRP has already proven retail staying power and that when institutional flows are added, the story changes completely.
Approval Odds Hit 93%
Polymarket data shows that the odds of the SEC approving an XRP ETF this year have hit 93%, up over 6% in the last week. This further confirms that the Commission is likely to approve these funds by the final deadline next month. The first of these final deadlines comes up for Grayscale’s XRP ETF on October 18, when the agency has to approve or disapprove the proposed rule change to list and trade shares of this fund.
Meanwhile, Bloomberg analysts Eric Balchunas and James Seyffart already stated that there is a 95% chance that these funds will get approved by the final deadline. The dismissal of the XRP lawsuit has also contributed to optimism that the SEC will approve these XRP ETFs by the deadline.
At the time of writing, the XRP price is trading at around $2.96, up over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
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