- XRP price significantly bounced above $3 after the weekend as positive narratives influenced market sentiment.
- Discussions centered on the high chance of the US SEC’s approval of XRP ETFs and the adoption of the token in China’s travel services.
XRP regained the $3 mark today, a price it has lost since September began. The token has shown a steady recovery on the way to the opening of the regular work week after successfully defending and bouncing off from the $2.78 support, overcoming cautious sentiment from well-known technical analysts last weekend.
Despite the Crypto Fear & Greed Index remaining at the “Neutral” zone this Tuesday at a score of 48, bulls are apparently taking over due to several major updates directly related to its ecosystem. One of the topics generating a lot of buzz within the cryptocurrency community right now is the potential approval of XRP exchange-traded funds (ETFs) by next month or earlier.
XRP ETF Approval Chances
Ten institutions have already filed for XRP ETFs with the US Securities and Exchange Commission (SEC). Fidelity, Grayscale, REX-Osprey, WisdomTree, CoinShares, 21Shares, Canary, and Bitwise have sought the regulator’s approval of their proposed spot XRP ETFs. At the same time, Tuttle Capital and ProShares requested a go signal for their futures XRP ETFs.
According to Bloomberg Intelligence’s James Seyffart and Eric Balchunas, the final deadlines for the SEC’s verdict on seven pending spot filings (except REX-Osprey) are due starting on October 17. So far, the odds favor the bulls as the experts projected a 95% chance for their approval.
Should the event come into fruition, it could signal the arrival of spot XRP ETFs by the fourth quarter. Analysts expect it to accelerate the token’s investor base, boosting its liquidity and triggering significant growth in XRP-denominated institutional outflows.
XRP Gaining Significant Traction in Institutional Payment in China
Another significant development is the partnership between a Nasdaq-listed travel company, Webus International, and Air China. The collaboration includes plans to integrate XRP payments into travel services, specifically for the airline’s PhoenixMiles loyalty program. The loyalty program has over 60 million members.
The notable event marks one of the most prominent references to a state-owned Chinese enterprise experimenting with crypto-linked payments. XRP’s value proposition of low fees, fast transactions, and efficiency is particularly appealing for international transactions. This is why companies with a large cross-border customer base are exploring its integration in their payment schemes.
However, due to China’s strict ban on cryptocurrency trading and payments, the service will likely be limited to the Hong Kong Special Administrative Region (SAR) and overseas platforms. In other words, while PhoenixMiles members abroad might be able to use XRP for services, it’s not expected to be rolled out for domestic flights or transactions within the mainland’s borders.
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