The impending approval of Ethereum spot ETFs on July 23 and the closed-door meeting between the SEC and Ripple on July 18 are two highly anticipated events for the second half of July. The developments surrounding these two events are likely to significantly impact the ETH and XRP prices, respectively.
Related: Will Ethereum ETF Approval Prompt a Market Rally or Crash?
Key Developments Ahead of ETH ETF Approval
- Since the SEC’s preliminary approval of Ethereum ETFs in May, the price of Ether has decreased by around 10% to $3,380.
- However, in the days leading up to the final S-1 filings due on July 16 and the expected ETF launch on July 23, Ether’s price has already started to surge.
- On July 16, Ether’s price increased by 7.1% to $3,433.07 and continued rising to around $3,490 at the time of writing.
- This price increase is attributed to the recent uptick in Bitcoin price coupled with the anticipation around the impending Ethereum ETF approvals, which are expected to drive significant inflows into Ether.
- Bloomberg analyst Eric Balchunas stated that the SEC has responded to the amended S-1 filings and that the Ethereum spot ETFs could launch on Monday, July 23.
Projected Impact of Ethereum ETFs
- Analysts forecast the Ethereum spot ETFs could drive up the price of Ether by as much as 90%.
- This is because Ether has about half the liquidity of Bitcoin, so smaller capital inflows into Ether ETFs could have an outsized impact on its price.
- Estimates suggest the Ether ETFs could attract $3-$4.8 billion in inflows within the first 5 months, which could lock up 0.7-1.05% of Ether’s total supply, creating a supply crunch and driving up prices.
- In comparison, the launch of Bitcoin spot ETFs earlier this year led to a nearly 60% price rally for Bitcoin.
So in summary, the search results indicate that the impending approval of Ethereum spot ETFs on July 23 has already started to positively impact Ether’s price, with further significant price appreciation expected once the ETFs launch and attract substantial inflows.
Related: SEC vs. Ripple Legal Battle To Reach Conclusion on July 18
XRP Price Surge Ahead of the Meeting
On July 12, XRP’s price surged by 6% to $0.47, despite a general market downturn, driven by optimism about a potential resolution in the SEC vs. Ripple lawsuit.
This price increase coincided with increased expectations that the lawsuit might end soon, with some analysts predicting a favorable outcome for Ripple, including a penalty of no more than $25 million.
As the meeting approaches, the anticipation of a resolution is likely to continue driving up XRP’s price, potentially leading to further gains.
Market Sentiment and Technical Analysis
The lawsuit has been a key market mover for XRP since the legal battle commenced, and the resolution is expected to have a substantial impact on the cryptocurrency’s price.
Analysts predict that if the lawsuit is resolved favorably for Ripple, XRP could reach $17 by 2025, driven by a bullish thesis and technical analysis.
The recent spike in active addresses on the XRP Ledger, with over 27,000 addresses active on July 10, supports a bullish thesis for the altcoin, signaling rising demand and relevance among market participants.
Legal Developments and Market Impact
The SEC initially sought a whopping $2 billion penalty against Ripple, accusing the company of conducting an unregistered securities offering via XRP sales. However, the SEC later proposed a $102.6 million penalty, which Ripple has contested.
The outcome of the lawsuit remains unpredictable, with an unfavorable ruling potentially having significant negative impacts on XRP’s price and overall market standing.
In summary, the closed-door meeting between the SEC and Ripple on July 18 is expected to significantly impact XRP’s price, with the anticipation of a favorable outcome driving further price increases.
