XRP’s market momentum has picked up recently with a notable increase in open interest and a jump in ETF approval odds. However, the approval process faces hurdles, especially with the delay in the Grayscale ETF.
XRP Open Interest and ETF Odds Surge
According to Coinglass, the XRP open interest risen by 2.98% to $4.61 billion while the volume surged by 8.26% to $7.73B. This uptick in XRP’s open interest indicates that more traders are entering the market, expecting higher prices to emerge soon especially with the Ripple banking license fuelling optimism.
Along with this, the XRP ETF approval odds have also risen by 16%, now standing at 87%. Such a movement reflects a greater state of optimism in the market about the future of XRP ETFs.
Despite these positive trends, the potential approval of the ETF by July 31, 2025, has dropped by 39%, now standing at just 14%. This decline in the approval chances indicates a lack of certainty in the approval process especially against the backdrop of the recent postponement of Grayscale Large Cap Fund ETF and the stalling of the Ripple SEC case conclusion.
Grayscale ETF Freeze and Market Reactions
The cryptocurrency community has been rattled following the move by SEC to freeze the Grayscale Digital Large Cap ETF. First, the SEC staff approved the ETF and it was to incorporate XRP, as well as other cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA).
The news of the approval was received positively as XRP rallied in the market. Nonetheless, the commissioners of the SEC interfered and stopped the process of approval and cited Rule 431(e) but without clear explanation.
The freeze placed a temporary stay on the Grayscale ETF, leaving it unclear how XRP might be treated in future ETFs. This extension has left the investors wary about the future of the XRP own ETF approval as the market had been optimistic that once the Grayscale ETF was approved, it would increase the odds of XRP gaining an ETF approval.
Nonetheless, the recent debut of the U.S. Solana ETF, where it experienced a tremendous first-day volume of $33 million, has added more buzz to crypto ETFs. The successful launch of Solana has increased the anticipation of such products to involve other cryptocurrencies as XRP.
Investor Sentiment Around XRP’s Price Action
The sentiment among investors around XRP has been characterized by sharp price swings in spite of increasing XRP open interest. This feeling is supported by the 10 pending applications of the XRP ETFs, with such firms as Franklin Templeton and Grayscale continuing with their proposals. In addition, Tuttle Capital Management plans to launch leveraged XRP ETFs on July 16, which may set the stage for a massive rally.
Meanwhile, institutional interest in XRP is growing, with several firms committing nearly $1 billion to XRP for treasury reserves. These developments suggest that XRP may soon see widespread adoption, particularly if an ETF is approved.
Moreover, according to Crypto analyst CasiTrades, XRP price is currently experiencing strong momentum after consolidating around key price levels. According to her findings, XRP price has successfully broken above the $2.25 resistance, triggering a potential bullish move.
However, the analyst points out that XRP price is facing some rejection at the $2.268 mark, which aligns with the .382 retracement level of the recent price wave. CasiTrades believes that XRP price might experience one more brief dip to $2.235 before it could continue its upward trend. The analyst suggests this level as an ideal entry point for potential bullish divergence, with a breakout target of $2.69 should the XRP ETF optimism continue to build up.
Kelvin Munene Murithi
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary .
With a Bachelor’s degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets.
His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content.
Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape.
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