The cryptocurrency market has seen significant volatility recently, with XRP (CRYPTO: XRP) experiencing a dramatic rise. Once trading around $0.50, it has now comfortably surpassed $2, even reaching highs above $3 earlier this year. This surge is largely attributed to the Securities and Exchange Commission (SEC) dropping its lawsuit against Ripple Labs, the company behind XRP. However, speculation is rife that another catalyst could propel XRP to even greater heights: the approval of a spot exchange-traded fund (ETF). **The Allure of an XRP Spot ETF:** ETFs offer investors a simpler way to gain exposure to digital currencies without the complexities of digital wallets and passwords. Unlike crypto ETFs that rely on derivatives, a spot ETF would directly hold the underlying cryptocurrency, providing a more direct investment. Given the success of Bitcoin and Ethereum spot ETFs, an XRP spot ETF is seen as the next logical step. Analysts at Bloomberg estimate an 85% chance of approval for an XRP spot ETF this year, although the SEC's decision has been delayed until mid-June. The more crypto-friendly climate under the current administration increases the likelihood of approval, making it a question of 'when' rather than 'if'. **Will a Spot ETF Send XRP to $5?** The hope is that an ETF would broaden XRP's investor base, leading to a significant price increase. XRP already boasts several advantages, including its efficiency in cross-border transactions (settling in 3-5 seconds) and low transaction costs (fractions of a cent). Many investors, while bullish on XRP, may be waiting for an ETF to easily add it to their portfolios. However, past ETF approvals haven't always resulted in immediate or significant price gains. Ethereum, for example, saw its price decline by nearly 50% after its spot ETF launched. Bitcoin, on the other hand, has performed well since its ETF approval. XRP's price has already seen a significant increase since November, rising over 300% in six months. Expecting a further doubling might be overly optimistic, especially as the market may already be pricing in the potential ETF approval. While the potential for an XRP spot ETF is significant, the actual price increase is difficult to predict and the current valuation might already reflect this anticipated development. **Is XRP a Good Investment?** The article concludes that XRP reaching $5 solely due to ETF approval is unlikely, given the current market optimism. However, if you're a crypto enthusiast comfortable with the inherent risks, investing in XRP may still be considered. The article emphasizes the importance of diversifying investments and conducting thorough research before making any investment decisions. The article promotes a separate stock advisor service that suggests other investment options instead of XRP. **Disclaimer:** This article presents information for educational purposes only and should not be considered investment advice. The cryptocurrency market is highly volatile, and investment decisions should be based on thorough research and consideration of individual risk tolerance.