Usman Salis
XRP (XRP) surged 2% in the Asian session on Friday as Grayscale filed to convert its XRP Trust into a spot ETF. With more issuers expected to submit applications next week, XRP could see a 27% rally.
XRP (XRP) Gains as Grayscale Moves to Convert XRP Trust to ETF
Ripple’s XRP (XRP) is at a pivotal moment after Grayscale's recent filing with the US Securities and Exchange Commission (SEC) to convert its XRP Trust into a spot ETF. The move has sparked optimism, leading to a 2% price gain in Friday’s Asian session. Analysts believe XRP could rally by 27% as more ETF applications flood the SEC in the coming days.
Grayscale’s XRP (XRP) ETF Filing Triggers Market Excitement
The US market is seeing renewed interest in altcoin ETFs, with major asset managers racing to file applications. Through NYSE Arca, Grayscale has submitted a 19b-4 filing to the SEC to convert its XRP Trust into a spot ETF.
According to the filing, the transition would allow investors to gain exposure to XRP (XRP) through a regulated national securities exchange, making it a more accessible investment vehicle. FOX Business journalist Eleanor Terrett noted that multiple issuers could follow Grayscale’s lead and submit their own XRP ETF filings next week.
"Keep an eye out for possibly more filing activity by issuers with $XRP ETF applications next week," Terrett posted on Thursday on X (formerly Twitter).
XRP (XRP) ETF Race Heats Up Among Asset Managers
Several major financial firms, including Bitwise, Canary Capital, 21Shares, WisdomTree, and CoinShares, have previously filed for XRP ETFs with the SEC. However, under the previous SEC administration, these applications were automatically withdrawn because regulators did not acknowledge them.
With the SEC now under new leadership, market participants are optimistic that fresh ETF applications could be approved, signaling a significant regulatory shift. Approval would boost institutional adoption of XRP (XRP) and mark the end of its four-year legal battle with the SEC, potentially triggering a strong price rally.
XRP (XRP) Consolidates Within Bullish Pennant
Despite minor fluctuations, XRP (XRP) remains in a bullish pennant pattern, signaling the potential for a breakout. According to Coinglass data, the token saw $1.78 million in futures liquidations in the last 24 hours, with long positions accounting for $842,000 and shorts at $941,000.
If XRP breaks above the pennant’s upper boundary and establishes it as a support level, analysts predict a 27% surge, possibly setting a new all-time high at $4.10. However, the token must first overcome its previous all-time high resistance at $3.55.
Technical indicators support a bullish outlook. The Relative Strength Index (RSI) is above neutral, signaling strong momentum. However, the Stochastic Oscillator (Stoch) is in the overbought zone, suggesting a potential short-term pullback.
A daily close below the $2.62 support level would invalidate the bullish thesis, making the next few trading sessions crucial for XRP’s trajectory.
Conclusion
With growing institutional interest and the potential approval of XRP ETFs, the asset’s price action remains at a critical juncture. If regulatory momentum continues, XRP (XRP) could break out of its consolidation phase and rally significantly. Traders will closely watch for upcoming ETF filings and any SEC responses that could further shape the market’s direction.
Usman Salis
