- Bettors grew bullish overnight that XRP ETFs will be approved.
- Investment giant Franklin Templeton applied for fund approval.
- JPMorgan estimates investors will pour $8 billion into XRP ETFs.
Polymarket bettors are sold — the US Securities and Exchange Commission will approve an exchange-traded fund for XRP this year.
Or, that’s what the wagering shows.
On Wednesday, the chances for an ETF jumped to 76% from 72% on the crypto-fuelled prediction market.
The catalyst appears to be news that Franklin Templeton, the California-based investment management giant with $1.6 trillion in assets, applied for approval this week to bring out an XRP ETF.
The cryptocurrency, which is designed to let Ripple facilitate cross border payments, has been on a world-beating tear for the last six months.
In mid-day trading UK time, XRP was up 2.7% over the last 24 hours compared to a 1.9% jump in Bitcoin, according to CoinGecko. Swept up in the broad market selloff this year, it’s lost more than a third of its value since its 12-month high in January.
Franklin Templeton’s application should cheer up investors. It is the latest in a flood of filings to launch ETFs for XRP and other altcoins.
This year, the SEC has accepted several applications without complaint, a break from the agency’s practice during the Biden administration when it frequently rejected such petitions. Acceptance does not equate to approval.
There is little doubt that approval of XRP ETFs would be a bonanza in fees for issuers. Northstake, a virtual asset service provider, estimates that investors will pour $400 million to $800 million in such funds in the first week alone.
JPMorgan predicts investors will pour $8 billion into XRP funds in their first year of trading.
Even so, Polymarket bettors are making their predictions at a febrile moment in the markets.
A combination of Trump’s on-and-off-again trade war with Canada and Mexico, the $1.4 billion Bybit hack, memecoin scandals, and general market uncertainty has seen the industry lose almost 30% — or $1.5 trillion — of its value since January.
Crypto market movers
- Bitcoin is up 1.9% over the past 24 hours to trade at $83,076.
- Ethereum is up 0.5% to trade at $1,919.
What we’re reading
- Coinbase stock = tradable onchain! — Milk Road
- Burned Tokens Are Gone Forever, Right? For 70 Billion CRO, Maybe Not ― Unchained
- Coinbase to make comeback in India as opposition to crypto eases — Financial Times
- Why Trump’s crypto policies are a worry in Europe ― DL News
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.