XRP Open Interest Surges as ProShares ETF Approval Nears

XRP is back again in the spotlight as excitement grows around the possible approval of a dedicated XRP exchange-traded fund (ETF) by ProShares.  According to CoinGape open interest in XRP futures has risen to levels not seen since early 2024, reaching as high as 800 million XRP before settling around 743 million, a 33% increase from just a few weeks ago.  

Open interest, which basically refers to the total number of active futures contracts in the market, is usually seen as a key sign of investor confidence. When it rises sharply, it often suggests that traders expect a big price movement, and that’s exactly what seems to be the case here.    

What’s Driving the Surge?

There are two main factors behind this surge. First, ProShares, a well-known investment company, is rumored to be close to launching an XRP ETF. Second, recent market data shows a sharp uptick in XRP futures activity, with the total value of open contracts nearing a massive $5 billion.

Adding to the speculation, the proposed ProShares XRP ETF has already appeared on the Depository Trust & Clearing Corporation (DTCC) platform. While this doesn’t mean official approval from the U.S. Securities and Exchange Commission (SEC) just yet, it often signals that a launch could be close. A similar pattern was seen in the lead-up to the approval of Bitcoin ETFs.

Korea Holds the Line

Interestingly, even though derivatives markets are heating up, XRP’s spot price (the current price for buying the actual token) has remained relatively stable. Analysts believe this is due to regional trading differences. In particular, Upbit, South Korea’s largest crypto exchange, has seen a big inflow of XRP, helping keep the price steady.

Meanwhile, other international exchanges reported a combined $8.82 million net outflow in XRP holdings. This regional imbalance suggests that Korean traders are playing a key role in holding prices steady, at least for now.

Echoes of November 2024?

Some market analysts are comparing current conditions to what was seen before XRP’s major rally in November 2024. One expert noted that the market spread, the difference between bid and ask prices, is now around 6.14%, which is nearly identical to the spread seen just before XRP made a significant jump last year. This similarity has sparked hopes that another big rally could be around the corner.

Trump-Linked ETF Adds More Buzz

Adding even more fuel to the fire, Donald Trump’s Truth Social platform has reportedly filed to create a new multi-asset crypto ETF. While most of this new fund will be invested in Bitcoin (70%), it will also include 2% in XRP, giving the token even more mainstream visibility.

What’s Next for XRP?

With the ProShares XRP ETF potentially just days or weeks away from launch, and open interest levels soaring, XRP could be on the edge of a breakout. If the SEC gives the green light, it could open the doors for institutional investors to enter the market in a big way, pushing both the futures and spot markets higher.

For now, all eyes are on Washington and the SEC. But one thing is clear: traders aren’t waiting around. They’re already placing their bets, and XRP is back in the race.