- The future of XRP depends on how the SEC decides Grayscale’s spot XRP exchange-traded fund request on May 22 which might lead to alterations of alternative crypto exchange-traded fund policies.
- XRP stands strong in the spot ETF competition because it leads both Solana and Cardano in its market liquidity capabilities.
- Market participants remain skeptical about XRP even though U.S. interest increases because of economic volatility alongside the lack of derivative products.
With ETF deadlines nearing and new SEC leadership under incoming Chair Paul Atkins, XRP is emerging as a key asset to watch amid cautious investor sentiment.The markets prepare for regulatory changes that will influence XRP’s future as the SEC’s expected response to Grayscale’s spot XRP ETF application draws nearer to its May 22 deadline. This comes after the recent approval of a leveraged XRP ETF.
XRP Leads in Liquidity as ETF Race Heats Up
XRP and Solana have become front-runners in the race for spot ETF approvals due to their robust liquidity levels. XRP maintains top positions on checked exchanges with respect to average market depth at 1% where it outpaces Solana while providing double the liquidity of Cardano’s ADA.
The lack of derivative products poses a challenge to XRP’s ETF approval process because Bitcoin received its approval through its future contracts design.However,the spot trading of XRP on U.S. platforms has achieved its maximum level since the SEC administered its 2021 enforcement case demonstrating growing homegrown interest. The U.S. market share of Solana declined drastically from its initial 2022 value of over 25% until it reached its current percentage of 16%.
Bearish Sentiment Builds Around XRP Amid Broader Market Risks
Public sentiment about XRP remains uncertain even after these new developments. Options data from Deribit shows a skew toward downside protection, with implied volatility curves favoring bearish positions ahead of the April 18 expiration. The ongoing economic risks together with regulatory uncertainties have driven these bearish trends instead of factors directly connected to XRP token performance.
XRP’s Fate Tied to ETF Ruling Amid Market Turmoil
OM token from Mantra Chain experienced a market-disrupting 90% depreciation as the stress on market depth became evident.The strong liquidity of Bitcoin persisted even as geopolitical tensions and tariffs triggered selloffs in traditional markets.
XRP’s market path will function as an indicator to show how altcoin-based exchange-traded funds will be regulated by the SEC after its new leadership takes charge in 2025. On May 22 the future of XRP will be redefined when its market status undergoes evaluation, which will challenge the SEC’s position on crypto advancements.
