The XRP price recovery stalled at the key resistance level of $3 as traders awaited the first launch of a spot XRP exchange-traded fund on Friday, Sept. 12.
Summary
- The Rex-Osprey XRP ETF will launch on Friday.
- It will be the first spot XRP ETF in the United States.
- The SEC is expected to approve other spot ETFs in October.
Rex-Osprey XRP ETF set to launch on Sep. 12
The XRP price will be in the spotlight tomorrow as Rex-Osprey launches the first spot ETF. This fund will have a first-mover advantage compared to those filed by companies like Franklin Templeton, Bitwise, and Invesco.
While the fund’s goal is to track the Ripple (XRP) price, it will be different from the others. The main difference is that it is based on the Investment Company Act of 1940, while the others are based on Act 33. Using the 1940 Act allowed Rex-Osprey to complete the 75-day review.
The other difference is that it will provide investors with exposure to XRP through a wholly owned Cayman Islands company.
This fund will be similar to the Rex-Osprey SOL + Staking ETF that has accumulated over $240 million in assets. As such, it is likely to be more expensive than the other upcoming XRP ETFs, given its 0.75% expense ratio.
While the new XRP ETF will be notable, the main catalyst for XRP will be the other funds, which will likely be approved in October. Polymarket data shows that the odds of these spot ETFs happening this year have jumped to 92%.
Analysts expect these funds will have substantial inflows within the first few months, which may boost the XRP price. SoSoValue data shows that spot Bitcoin (BTC) and Ethereum (ETH) funds hold between 5% and 7% of their market capitalization. If XRP achieves this, then the main ETFs could attract more than $9 billion in assets in the first year.
XRP price technical analysis
The daily time frame chart shows that the XRP price has formed a few chart patterns that may trigger more gains in the near term. It has formed a double bottom at $2.70 and a neckline at $3.38.
Most importantly, it has formed a falling wedge pattern and has already moved above its upper side, confirming a bullish breakout. It has remained above the 100-day exponential moving average.
The Relative Strength Index has moved above the neutral point at 50, while the two lines of the Percentage Price Oscillator have crossed. Therefore, XRP will likely rebound and potentially hit an extreme overshoot level near $4.30.
