- Brazil becomes the first country to approve an XRP ETF application as the Securities and Exchange Commission (CVM) gives the “go-ahead” to full operation.
- XRP has been tipped to reach a market cap of $3.4 trillion this cycle; another formula estimates the market cap to hit $978 billion.
XRP Exchange Traded Fund (ETF) makes historical progress as the Brazilian Securities and Exchange Commission (CVM) greenlights its operation within the region. As outlined in our recent blog post, this fund would provide direct XRP exposure to investors through the B3 stock exchange.
More About the XRP ETF Approval
Analyzing the report, we found that the fund was issued by the asset manager Hashdex while leading Brazilian brokerage Genial Investimentos has emerged as the administrator. Meanwhile, Hashdex provides ETFs for several crypto assets, including Bitcoin, Ethereum, and Solana.
Regardless of the approval, the XRP ETF is pending the required documentation and disclosure on the official trading date. Most importantly, this decision is expected to accelerate the approval of the XRP ETF applications in the US.
As previously mentioned in our report, multiple firms, including WisdomTree, 21Shares, and Bitwise, have submitted applications for XRP-based investment products. Currently, the regulator is reported to have up to 240 days to review these applications and provide final decisions.
In a recent update, we examined the analysis by Bloomberg ETF analysts Eric Balchunas and James Seyffart which indicated that the approval of XRP ETF could be delayed. According to them, the XRP status as securities is currently unclear and in contention in an ongoing legal battle.
XRP Price Analysis and Reactions
Following the announcement of the XRP ETF approval in Brazil, the asset has “printed” a 4.7% gain on its 24-price chart, extending its weekly returns to 9%. However, the 30-day gain remains 12.9% down at press time as XRP trades at $2.6. Meanwhile, the daily trading volume has also recorded a 10% surge as $5.3 billion changes hands at press time.
Subjecting the asset to critical analysis, an analyst identified as Egrag Crypto has predicted that XRP could hit a market cap of $3.4 trillion. Fascinatingly, this conclusion was drawn from what he termed as the Non-Logarithmic Measured Move. Additionally, EGRAG CRYPTO explained that the power of Fib 1.618, which is also called the golden ratio, suggests a market cap of $978 billion this cycle.
Assessing the feasibility of this prediction, the analyst pointed out that XRP’s market cap surged by 15,000% from fib 1.0 in the last cycle. According to him, the expected move is just 4% of that surge. Fascinatingly, another analyst called Steph has outlined three key patterns that suggest that an uptrend is imminent.
Firstly, this analyst has confirmed that the asset has broken above its daily EMA ribbons. The last time this occurred (early November 2024), XRP surged by more than 400% in a week. Repeating this margin of increase would position XRP at $13.25. Apart from this, Steph also confirmed that there has been a bullish crossover on the daily Moving Average Convergence Divergence (MACD) chart. Lastly, he highlighted that the asset has completed a double-bottom breakout on the monthly timeframe.
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