Franklin Templeton XRP ETF Approval Spurs Demand
The US Securities and Exchange Commission approved Franklin Templeton’s spot XRP ETF this week. The XRP ETF approval marks the first major institutional product for Ripple’s token. This news comes amid broader cryptocurrency market weakness, with XRP price clusters forming around key support levels at $0.50 and $0.60.
Institutional interest is expected to grow as fund managers seek regulated exposure. Analysts note the XRP ETF could boost trading volumes and liquidity. Short-term volatility may persist, but the medium-term outlook for XRP remains bullish. Traders should monitor inflows into the ETF and price reactions around established support bands.
Bullish
The approval of Franklin Templeton’s spot XRP ETF is a bullish catalyst. Similar to the Bitcoin spot ETF approval in 2021, this event is expected to draw significant institutional inflows into XRP. The ETF offers a regulated vehicle for fund managers, which can bolster liquidity and improve price discovery. Despite current market weakness and XRP trading in tight clusters around $0.50 and $0.60 support levels, the ETF launch may prompt renewed buying interest.
In the short term, traders may see volatility as order books adjust and ETF-related flows materialize. Rapid price swings around key support and resistance zones are likely. Over the longer term, sustained institutional participation through the XRP ETF could stabilize volumes and underpin a bullish trend. If inflows meet or exceed expectations, XRP may break out of its current price clusters and revisit higher levels.