XRP News Today: ETF Launch Hopes Clash With Ripple CTO Shake-Up

Ripple Leadership Shake-Up: CTO Steps Down but Stays Close

XRP traders faced unexpected news as Ripple’s Chief Technical Officer announced he will step down, weighing on sentiment.

Ripple Chief Technical Officer David ‘JoelKatz’ Schwartz stated:

“The time has come for me to step back from my day-to-day duties as Ripple CTO at the end of this year. […] But be warned, I’m not going away from the XRP community. You haven’t seen the last of me (now, or ever). […] I’ll still be in and out of the Ripple office as CTO Emeritus, and as my last task at Ripple, Chris asked me to join Ripple’s Board of Directors to continue supporting the company’s mission and long-term vision…and I accept!”

As with any company, a significant departure can affect investor sentiment. In the digital asset space, the departure of a long-standing Chief Technical Officer may raise concerns about the future development of XRPL and other Ripple products, which may influence XRP adoption.

However, Schwartz’s presence on the Ripple board should allay such fears.

Ripple CEO Brad Garlinghouse highlighted Schwartz’s appointment to the board, commenting:

“Am glad you won’t be far as you join the Ripple board, continuing to impart your deep crypto wisdom and guidance on what we’re building.”

The announcement comes at a pivotal time for Ripple, which is pursuing a US-chartered banking licence and eyeing SWIFT’s dominance in the global remittance space.

While Ripple was in the spotlight this week, investors remain focused on crypto-spot ETF developments, crucial for XRP’s price outlook.

ETF Momentum Builds: XRP-Spot Listings Near the Finish Line

21Shares, Bitwise, Canary Capital, Grayscale, and WisdomTree filed notices with the SEC on Tuesday, September 30, withdrawing their 19b-4 applications for XRP-spot ETFs. The ETF issuers filed the notices in response to the SEC’s request for the withdrawal of all 19b-4s for ADA, DOGE, LTC, SOL, and XRP-spot ETFs.

Crypto commentator Kenny Nguyen shared the news, commenting:

“This is to speed up the SEC approval process under the new generic listing standards.”

Crucially, the withdrawal notices were positive steps toward the launch of crypto-spot ETFs, bringing altcoins to institutional investors.

Legal Clarity: XRP Cemented as a Non-Security

There should be no confusion about the withdrawals, given that the SEC recently approved the Generic Listing Standards (GLS) for Commodity-based shares. The GLS enables the listing and trading of crypto-spot ETFs that meet the requirements of the GLS framework. The framework removes the need for 19b-4 filings and the SEC’s review process.

Nevertheless, traders will be watching the ETF space closely this week. Canary Capital’s Litecoin-spot ETF has a final decision deadline of October 2. Given that Canary Capital has filed the notice to withdraw its 19b-4s, the listing of its LTC-spot ETF would signal the imminent launch of the XRP-spot ETFs.

Rulings in the SEC vs. Ripple case resolved any uncertainty about XRP’s classification as a non-security. On August 22, the US Court of Appeals approved the SEC and Ripple’s Joint Stipulation of Dismissal, concluding the Ripple case. Crucially, the SEC withdrew its appeal against the Programmatic Sales of XRP ruling, cementing XRP’s status as a non-security.

In 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. The ruling means that an XRP-spot ETF would fall under the SEC’s framework for Commodity-Based shares.

ETF Launch Timeline: Key Dates Traders Must Watch

This week’s notices to the SEC mean that XRP-spot ETFs could potentially launch as early as Friday, October 3. The final decision deadlines for the XRP-spot ETFs are as follows:

• Grayscale: October 18.
• 21Shares: October 19.
• Bitwise: October 20.
• Canary Capital: October 24.
• CoinShares: October 25.
• WisdomTree: October 25.
• Franklin Templeton: November 14.

However, given the withdrawal of the 19b-4s, the ETF issuers could launch their crypto-spot ETFs simultaneously, irrespective of the final decision deadlines.

Price Action & Technical Analysis: Can Bulls Reclaim the $3 Mark?

XRP fell 1.26% on Tuesday, September 30, reversing the previous day’s 0.47% gain to close at $2.8463. The token snapped a four-day winning streak and underperformed the broader market (-0.62%). Notably, the pullback left XRP well below the psychological $3 level.

Traders are watching the following technical levels:

• Support: $2.8, followed by $2.5.
• Resistance: $3, $3.2, and the all-time high at $3.66.

In the near term, several key scenarios could influence price trends:

• XRP ETF flows.
• Spot ETF headlines: Listing and launches or delays of crypto-spot ETFs, and BlackRock’s stance on an XRP-spot ETF.
• Blue-chip companies’ demand for XRP as a treasury reserve asset.
• Regulatory milestones: Ripple’s application for a US-chartered bank license, the Market Structure Bill, and SWIFT-related developments may also influence sentiment.

Catalysts & Scenarios

The combination of ETF flows, regulatory developments, and demand from blue-chip companies could dictate whether XRP breaches support levels or breaks above resistance.

Bearish Scenario

• GDLC, BITW, and XRPR ETFs report outflows, and BlackRock downplays plans for an XRP-spot ETF.
• SEC delays XRP-spot ETF launches.
• Lawmakers challenge crypto-friendly regulations, including the Market Structure Bill.
• Blue-chip companies avoid XRP as a treasury reserve asset.
• OCC delays or rejects Ripple’s US-chartered bank license.
• SWIFT keeps its market share in global remittances, capping Ripple’s market access.

These bearish events could drag XRP toward $2.8. A drop below $2.8 would bring the $2.5 support level into play.

Bullish Scenario

• BITW, GDLC, and XRPR register robust demand.
• BlackRock lists and trades an iShares XRP Trust, and ETF issuers roll out XRP-spot ETFs.
• Blue-chip companies target XRP for treasury purposes, and more payment platforms integrate Ripple technology.
• Ripple secures a US-chartered bank license, and the Market Structure Bill passes the Senate.
• SWIFT loses market share of global remittances to Ripple.

These events could drive XRP toward $3. A break above $3 could open the door to testing $3.2.

The Big Question: Will ETFs Spark a Breakout This Week?

Will crypto-spot ETFs launch by Friday? ETF developments and post-launch flow trends would be crucial for near-term price trends.

Robust demand for XRP-spot ETFs could send the token beyond its record high of $3.66. However, legislative developments remain crucial for broader retail and institutional adoption. Traders should, therefore, closely monitor the Market Structure Bill’s passage on Capitol Hill. Clear rules of the road could fuel demand from Main Street.

Analysts will closely monitor how regulatory and economic risks influence XRP’s price outlook in the coming weeks.