Let’s imagine a world where cryptocurrency trading becomes as simple as buying a traditional stock. With the introduction of exchange-traded funds (ETFs), investors no longer need to deal with complex wallets, private keys, or risky crypto exchanges.
Crypto ETFs encourage participation from institutional investors, which further legitimizes the market and makes crypto available for all.
After the successful launches of Bitcoin and Ethereum ETFs, investors’ expectations have increased and attention has now turned to XRP, Ripple’s native cryptocurrency. XRP ETFs are getting delayed for long now, waiting for the U.S. Securities and Exchange Commission (SEC) approval.
In this article, we will understand what crypto ETFs are, XRP ETFs and its pending approval from the U.S. SEC. We will also talk about its benefits and top nine funds that filed for XRP ETFs.
Overview of Crypto ETF
Exchange-Traded Fund is an investment option, designed for the investors who want to invest in crypto without directly buying or holding them. It is a regulated investment instrument that tracks the price of one or more cryptocurrencies and is traded on stock exchange. The ETF makes it easier for institutional and retail investors to plough money into crypto through a familiar financial asset.
There are mainly two types of Crypto ETFs – Spot ETFs and Futures ETFs. In spot crypto ETFs, the underlying crypto assets are directly held and reflect its real-time market price while in futures crypto ETFs, they track crypto futures contracts rather than actual assets which speculate on future prices.
XRP ETF
XRP ETFs allow traders to gain exposure to XRP’s price movements without the need to directly purchase, store, or manage the cryptocurrency itself.
Currently, the crypto ETFs of Bitcoin and Ethereum are approved in the U.S. and now investors are eagerly awaiting the U.S. SEC’s decision on XRP ETF.
Many funds have entered the growing XRP exchange-traded fund race, with Franklin Templeton becoming the latest firm to file for a spot XRP ETF amid the U.S. SEC approval delays.
This is extending the uncertainty surrounding its approval. Despite the postponement, market analysts remain optimistic about the eventual approval of these ETFs.
When will XRP ETF be Approved?
On March 11, the SEC postponed its decision on approval of major spot crypto ETFs which include XRP, Solana, Litecoin, and Dogecoin. The move was not completely expected, and wasn’t shocking either for the industry.
According to James Seyffart, a Bloomberg ETF analyst, took to X (formerly Twitter) on March 11 and stated that the delay was “expected” and part of the “standard procedure.” He reassured investors that this postponement does not negatively impact the chances of approval in the long run.
Seyffart also pointed out that the regulatory landscape is in a state of flux, particularly with President Donald Trump’s nominee for SEC Chair, Paul Atkins, still awaiting congressional confirmation. He emphasized that the final deadlines for these ETFs are not until October, leaving ample time for potential approval.
It took issuers years to receive the SEC’s green lights on launching spot Bitcoin Ethereum ETFs, even despite the fact that there had been a well-established regulated futures market for both assets.
On April 16, 2025, the U.S. appellate court granted a joint motion over the long battle between Ripple Labs and the Securities and Exchange Commission. This has fuelled optimism over XRP exchange-traded funds (ETFs). The move is expected to give a boost to XRP.
Top 9 Funds Filed for XRP ETF
At the time of writing, there are mainly nine firms that have filed for XRP ETFs. They are:
| Bitwise | It is one of the major crypto asset managers and is the first company that filed for an XRP ETF on October 2, 2024. |
| Canary Capital | It is an investment firm that specializes in unique investment solutions and wants to capitalize on emerging opportunities in the crypto market. It filed for XRP ETF on October 8, 2024. |
| 21Shares | It is a crypto investment company that is based in Switzerland and is known for providing a wide range of cryptocurrency exchange-traded products. In November 2024, it filed for XRP ETFs. |
| WisdomTree | It’s a company that integrates innovative investment strategies with traditional asset management and filed for XRP ETFs in December 2024. |
| ProShares | It is a crypto firm that is known for its diverse ETF offerings and filed for XRP ETFs in January 2025. |
| CoinShares | European crypto investment firm popular for its innovative approach to digital asset management and filed for XRP ETFs in January 2025. |
| Grayscale Investments | It is one of the major digital currency asset managers that proposed converting its existing XRP Trust into XRP ETFs in January 2025. |
| Volatility Shares | It is a crypto investment firm that is headquartered in Florida and filed for XRP ETFs on March 7, 2025. |
| Franklin Templeton | It is one of the biggest global investment firms and on March 11, it filed for XRP ETF. |
How ETF Approval Could Boost XRP?
Once XRP ETFs are approved by the SEC, it will have various advantages. One of the most important benefits will be an increase in institutional adoption of XRP as ETFs provide an easy access for traditional investors. This will further increase demand and provide market stability.
This was experienced when Bitcoin ETFs were approved in January 2024 which increased capital inflows, helping Bitcoin to cross the $100,000 mark in late 2024.
Following are some of the key benefits if XRP ETFs are approved.
Increases Liquidity
The approval of XRP ETFs may also increase liquidity for XRP as ETFs are traded on major stock exchanges which makes it easy and accessible for each and every investor to buy and sell. This could lead to an increase in trading volume and may reduce price fluctuations.
For example, when Ethereum ETFs were approved, liquidity for the Ethereum rose and reduced its price volatility.
Restores Legitimacy
If XRP ETFs are approved, it will help in restoring the legitimacy of XRP as an asset class. The approval of XRP ETFs by the SEC is like a regulatory endorsement that reduces concerns related to the legality of XRP which can raise investors’ trust.
Example, the mainstream adoption of Bitcoin increased to new heights after it received ETFs approval. After the approval of XRP ETFs, it can provide users with portfolio diversification. Investors by including XRP in their portfolios can invest in emerging crypto like XRP, without the complexities of directly holding the crypto asset.
Additional Investment Option for TradeFi
After the approval of XRP ETFs, it can provide users with portfolio diversification. Investors by including XRP in their portfolios can invest in emerging crypto like XRP, without the complexities of directly holding the crypto asset.
What to Expect from XRP in 2025?
If we look at the price history of the XRP in October 2024, its price was hovering around $0.5. After the filing of several XRP ETFs started, its price surged by more than 300%, which shows the growing interest of crypto investors in XRP ETFs.
Once the ETFs are approved, XRP price is expected to go above $5 from its current price, at $2.12. This prediction is based on the price history of Bitcoin.
Conclusion
The approval of XRP ETFs will play an important role in the crypto industry. It will increase market demand and exposure of the investors. It will also open the door for institutional investors who are restricted from directly holding crypto, raising institutional accessibility.
The SEC decision in favor of XRP ETFs will assist asset managers who are keen to establish themselves in the growing cryptocurrency ETF space. The approval could potentially provide regulatory clarity for XRP.
Let us understand what crypto ETFs are and XRP ETFs’ pending approval from the U.S. SEC. We will also talk about the top nine funds filed for XRP ETFs.
