XRP ETF Approval and Market Analysis

On July 1, 2025, significant developments in the cryptocurrency market were highlighted, particularly regarding the potential approval of an XRP-spot ETF following the SEC's approval of Grayscale's Digital Large Cap Fund (GDLC) conversion into an ETF. This approval has raised optimism among analysts, who now estimate a 95% chance of the SEC approving pending XRP-spot ETF applications by the end of the year.

Key Developments

• The SEC's approval of Grayscale's GDLC ETF allows for exposure to major cryptocurrencies, including XRP.
• Analysts from Bloomberg Intelligence have increased the likelihood of XRP-spot ETF approval from 77.3% to 89% following the GDLC ETF approval.
• Despite the positive sentiment, XRP's price fell by 2.93% on July 1, underperforming the broader crypto market.
• Total outflows from BTC-spot ETFs reached $342 million, ending a 16-day inflow streak, as investor sentiment waned due to tax-related disappointments.

Ripple Case and SEC Appeal

The ongoing SEC vs. Ripple case is nearing its conclusion, with Ripple dropping its cross-appeal. Investors are now focused on the SEC's potential decision to withdraw its appeal against the ruling on Programmatic Sales of XRP. A favorable vote from the SEC could pave the way for BlackRock to file for an XRP-spot ETF.

XRP Price Analysis

As of July 1, XRP closed at $2.1723, reversing previous gains. The price trajectory is closely tied to developments in the SEC appeal and ETF approvals. A breakout above the 50-day Exponential Moving Average (EMA) could lead to a target of $2.3389, while a drop below the 200-day EMA could expose XRP to lower support levels.

Bitcoin Market Reaction

Bitcoin also faced pressure, dropping to $105,743 amid legislative setbacks regarding crypto taxation. The One Big Beautiful Bill Act, which did not include crypto tax exemptions, contributed to the negative sentiment. The near-term outlook for Bitcoin is influenced by various factors, including economic data, Fed policy, and ETF flows.

Conclusion

Investors are advised to monitor developments related to the Ripple case, legislative updates, and market trends as these factors will significantly impact the future of XRP and Bitcoin prices. The potential approval of XRP-spot ETFs could be a game-changer for the cryptocurrency market.