XRP ETF Launch Looms Amid SEC Uncertainty
Investor focus shifted to the ETF market on Monday, April 7, amid heightened tariff-driven volatility. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas highlighted the upcoming launch of the Teucrium 2x Long Daily XRP ETF, stating:
“A 2x XRP ETF is launching tmrw in US, the first-ever XRP ETF on the market. Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, altho our odds are pretty high.”
The Fund aims to deliver two times the daily price performance of XRP for a single day, not for any other period. According to the fund’s profile:
“XRP is one of the most widely traded cryptocurrencies in the digital asset market.[1] The supply and demand for XRP are often influenced by regulatory developments, technological advancements, and market sentiment, making it an active and dynamic asset for traders. XRP is an innovation with a limited history. There is no guarantee that usage will grow; declining usage could heighten volatility or lower XRP’s price, negatively affecting the Fund.”
Launching on Tuesday, April 8, the leveraged ETF comes amid an extended period of uncertainty. The SEC has yet to clarify its stance on the appeal against the Programmatic Sales of XRP ruling, contributing to the pullback from January’s high of $3.3999. The SEC’s appeal strategy may determine the fate of the XRP-spot ETF applications and influence XRP’s supply-demand trajectory.
Ripple’s Court Deadline Looms: Will the SEC Drop Its Appeal?
Notably, Ripple must file its appeal-related reply brief by April 16 to contest the SEC’s appeal-related opening brief. In March, Ripple CEO Brad Garlinghouse stated that the SEC planned to withdraw its appeal. A withdrawal before Ripple’s filing deadline could help prevent a market sell-off. A resolution to the SEC vs. Ripple case could pave the way for a US XRP-spot ETF market. Investors expect XRP-spot ETFs to draw significant interest, potentially sending XRP to record highs.
The leveraged XRP ETF’s launch could give investors insights into the current demand for XRP-related products. However, ongoing tariff-fueled market volatility may weigh on near-term demand.
XRP Price Outlook: Legal and ETF Catalysts
On Monday, April 7, XRP dropped 1.22%, adding to Sunday’s 10.38% plunge, closing at $1.8983. XRP underperformed the broader market, which advanced by 0.61%, taking the total crypto market cap to $2.47 trillion.
Several catalysts need consideration, potentially influencing XRP price trends:
Bitcoin Price Forecast
Every new Bitcoin analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Bitcoin forecasts- SEC vs. Ripple Court Filings: A withdrawal or settlement could send XRP toward its all-time high of $3.5505.
- XRP-Spot ETF Prospects: Regulatory approval may trigger institutional inflows; delays could limit the upside.
- Macroeconomic risks: Heightened US-China trade tensions, elevated US inflation, or hawkish Fed guidance could push XRP toward $1.7938, while easing conditions could support a recovery toward $3.00.
See our full XRP forecast here.
Bitcoin Briefly Breaks the $85k Barrier on Tariff Chatter
While XRP extended its losses, bitcoin (BTC) faced a choppy Monday session amid tariff developments. President Trump dismissed rumors of pausing tariffs while threatening an additional 50% tariff on China on top of the upcoming 34% levy, effective Wednesday, April 9. The tariff threats impacted demand for risk assets.
BTC-Spot ETFs Extend Outflow Streak
Trump’s tariffs also weighed on institutional demand, capping BTC’s upside. According to Farside Investors, BTC-spot ETF flows for April 7 included:
- Grayscale Bitcoin Trust (GBTC): Net outflows of $74 million.
- Invesco Galaxy Bitcoin ETF (BTCO): Net outflows of $12.9 million.
- VanEck Bitcoin ETF (HODL): Net outflows of $6.1 million.
- ARK 21Shares Bitcoin ETF (ARKB): Net outflows of $4.7 million.
Excluding BlackRock’s (BLK) pending iShares Bitcoin Trust (IBIT) flow data, the US BTC-spot ETF market recorded $97.7 million in net outflows, marking six outflows days in the last seven sessions.
BTC Price Outlook: Bearish and Bullish Scenarios
On April 7, BTC gained 1.1%, partially reversing Sunday’s 6.14% loss to close at $79,165.
BTC scenarios include:
- Bearish Scenario: Escalating trade tensions, hotter US inflation (April 10), a hawkish Fed stance, extended BTC-spot ETF outflows, or opposition to the Bitcoin Act could drag BTC toward $70,000.
- Bullish Scenario: Softer US inflation data, a dovish Fed, tariff de-escalation, bipartisan crypto support, and sustained ETF inflows could lift BTC toward $109,312.
Market Outlook: Themes to Watch
Several key drivers will guide crypto market sentiment in the coming days:
- SEC vs. Ripple case-related updates.
- Tariffs and countermeasures.
- Progress on the Bitcoin Act.
- The US CPI Report (April 10).
- US BTC-spot ETF flow trends and investor positioning.
While recent SEC signals offer reassurance, longer-term sentiment hinges on regulatory clarity. Explore what analysts say is needed for cryptos to reach new highs.
