XRP ETF Approval May Send Its Price Soaring to $1.50, ChatGPT Predicts

Ever since the launch of exchange-traded funds (ETFs) in the US tracking the performance of Bitcoin (in January 2024) and Ethereum (July 2024), industry participants have been wondering what's coming next.

Several ETFs have been launched in the US, tracking the performance of Bitcoin and Ethereum. Now, indications suggest that an XRP ETF may be on the horizon.

Bitwise registered an XRP ETF in Delaware early October, and Canary Capital filed an application for a similar fund with the US SEC.

The Commission’s legal battle with Ripple spans nearly four years, making an approval challenging. Yet, it remains a possibility that could propel XRP’s price.

We asked ChatGPT to estimate the potential price targets for XRP if an ETF were to be approved.

The chatbot estimated that XRP’s price could soar to $1.50 within months of approval. However, this exponential rise would depend on other elements, including increased institutional investment, broader market adoption, and more.

ChatGPT went even further, predicting that the potential green light of an XRP ETF combined with a favorable resolution of the Ripple v. SEC lawsuit could pump the asset’s value to over $2.50 in the mid-term.

The case has recently witnessed some key developments. As CryptoPotato reported, the regulator appealed a 2023 verdict set by Federal Judge Torres, which ruled that secondary sales of Ripple’s XRP token did not constitute securities sales.

Prior to the contend, the magistrate ordered the company to pay a $125 million penalty for violating certain securities laws, an amount representing just a fraction of the $2 billion the SEC initially sought.

Watch Out for Sell the News Effect

Conversely, ChatGPT warned investors that XRP’s value may head south even if the ETF tracking the asset’s performance is approved due to some behavioral factors.

One example is “the Buy the Rumor, Sell the News” phenomenon, in which prices rise in anticipation of a positive event and then plummet after an official announcement.

“While an ETF approval generally signals a positive outlook for an asset, XRP’s reaction will depend heavily on the timing, market sentiment, and investor behavior. If many traders are already positioned for a bullish outcome, a price drop is possible due to profit-taking and unmet expectations,” the chatbot claimed.

A classic “sell-the-news” event occurred at the start of this year. BTC’s price gradually increased for months in anticipation of the approval of the first spot Bitcoin ETF in America. Shortly after the launch, though, the asset made a U-turn, erasing much of the gains.

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