**XRP ETF Anticipation Grows Amid Legal Developments**

As the legal standoff with the SEC appears to wind down, the XRP community’s attention shifts to the potential green light for a Ripple ETF in the United States. Despite this optimistic outlook, some market participants hold a bearish stance on the asset, based on insights from Kaiko.

The approval of Bitcoin and Ethereum ETFs in the US last year has paved the way for other digital currencies to pursue similar milestones. The regulatory landscape in the US, significantly influenced by recent political shifts, hints at a more inclusive approach towards smaller digital currencies in the institutional realm. XRP, the third-largest cryptocurrency by market capitalization, excluding stablecoins, stands at the forefront of this development with several financial firms vying to launch related products in the US. The SEC has recognized most of these applications, with approval probabilities for 2025 hovering around 77%, a figure that plunges to 29% by the end of July, according to Polymarket.

Analysts are confident that concluding the lawsuit against the SEC would eliminate major hurdles for an XRP ETF. While some see this as the trigger for significant price movements, a detailed examination suggests investors tread with caution due to several potential risks.

**Market Sentiment Swings to Bearish**

A recent analysis by Kaiko pointed out the remarkable liquidity of XRP, highlighting its leading position in the ETF race. The asset’s market depth saw a significant boost, surpassing that of SOL and doubling ADA’s, driven by hopes tied to US political and regulatory changes. Despite the high anticipation surrounding an XRP ETF and Ripple’s recent achievements, including a significant acquisition, the options market exhibits a bearish inclination. According to Deribit, the volatility smile for options expiring in April is markedly skewed, indicating a higher demand for downside protection. This trend appears to be aligned with the current broader market apprehensions stemming from macroeconomic uncertainties.

Despite the surrounding excitement for Ripple’s ETF prospects, the options market’s bearish stance underscores the complex dynamics at play in the cryptocurrency landscape.

Tweet this: “As the #XRP community eagerly awaits ETF developments, market analysis reveals a cautious sentiment amid broader economic concerns. Will Ripple navigate these challenges successfully? #Cryptocurrency #RippleETF”