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XRP News Today: ETH-Spot ETF Approvals Could Open the Door to XRP-Spot ETFs

By:
Bob Mason
Published: May 21, 2024, 02:42 GMT+00:00

Key Points:

  • XRP rallied 5.48% on Monday (May 20), closing the session at $0.5371.
  • Hopes of the SEC approving ETH-spot ETFs drove buyer demand for XRP and the broader crypto market.
  • SEC vs. Ripple case-related news and crypto-spot ETF chatter need consideration on Tuesday (May 21).
XRP News Today

In this article:

The Monday Overview

On Monday (May 20), XRP rallied 5.48%. Reversing a 2.11% loss from Sunday (May 19), XRP closed the session at $0.5371.

ETH-Spot ETF Market News Raises Hopes of an XRP-Spot ETF Market

On Monday, news hit the wires of the SEC requesting ETH-spot ETF issuers to update 19b-4 filings urgently. The news fueled a 19.24% ETH rally and a total crypto market cap gain of 9.18% ($214.19 billion).

An SEC approval of US ETH-spot ETFs could pave the way for a crypto-spot ETF market. Concerns about the SEC labeling ETH and altcoins securities had sunk bets on the SEC approving the ETH-spot ETFs and hopes of an XRP-spot ETF market.

If the SEC approves the first batch of ETH-spot ETFs, it might encourage issuers to submit applications for XRP-spot ETFs

In November 2023, XRP surged to a high of $0.7503 on fake news of BlackRock (BLK) filing for an XRP-spot ETF. The market reaction reflected the price impact of an XRP-spot ETF market on XRP.

However, the ongoing SEC vs. Ripple case remains a hurdle for issuers vying for an XRP-spot ETF market.

SEC vs. Ripple: Appeal Threat Lingers as Case Nears Its Conclusion

On Monday (May 20), the SEC vs. Ripple case reached its final stages. The SEC, Ripple, and any third parties filed briefs opposing the omnibus letter motions. After a court ruling on the omnibus sealing motions, the parties have 14 days to file redacted versions of all documents.

The court will then decide on the penalty Ripple must pay for breaching US securities laws. Ripple anticipates a court ruling within the coming months.

After the final ruling, the SEC can appeal against the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

If the SEC decides against an appeal, the door could open to an XRP-spot ETF market and a possible XRP return to $1. On the other hand, if the SEC appeals against the Programmatic Sales of XRP ruling, issuers may have to wait until the outcome of an appeal before filing applications for XRP-spot ETFs.

XRP Price Action

XRP Weekly Chart sent bearish near-term price signals.
XRPUSD 210524 Weekly Chart

Daily Chart

XRP hovered below the 50-day and 200-day EMAs, confirming the bearish price signals.

A break above the 50-day EMA would support a move to the 200-day EMA. A breakout from the 200-day EMA could give the bulls a run at the $0.5739 resistance level and the $0.60 handle.

SEC vs. Ripple case-related updates and crypto-spot ETF chatter need consideration.

Conversely, a break below the trend lines could signal a fall to the $0.48 handle.

The 14-day RSI reading, 54.46, indicates a break above the $0.0.5739 resistance level before entering overbought territory.

Daily Chart sends bearish price signals.
XRPUSD 210524 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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