As we look ahead to 2025, one thing that crypto traders want is a more open trading environment, and what a lot of them hope for is XRP ETFs arrival. The race to launch a Spot XRP Exchange-Traded Fund (ETF) is already gaining momentum, with multiple high-profile filings now in the SEC’s hands.
Bitwise Asset Management, Canary Capital, 21Shares, and WisdomTree are among the firms vying for approval, signalling a growing interest in XRP-focused investment products.
The first filings started with Bitwise’s S-1 application on October 2 and 21Shares’ filing for Core XRP Trust shares on November 1. The most recent filing, submitted by WisdomTree on December 2, 2024, proposes the “WisdomTree XRP Fund” to be listed on the Cboe BZX Exchange.
These filings highlight the growing interest in XRP-based ETFs, with asset managers betting on the potential demand for a regulated, institutional-grade investment vehicle tied to the cryptocurrency.
Historically, the SEC has been reluctant to approve crypto ETFs due to concerns over market manipulation and insufficient regulatory oversight. However, the approval of BlackRock’s Spot Bitcoin ETF earlier this year signalled a notable shift in the SEC’s stance.
Adding to the optimism is SEC Chair Gary Gensler’s upcoming departure. Known for his stringent approach to cryptocurrencies, Gensler’s exit may open the door to more favourable regulatory decisions.
Ripple’s recent legal victories in its case against the SEC over whether XRP is a security also bolster the chances of an ETF approval. These developments have significantly strengthened XRP’s position in the regulatory landscape.
Market analysts note that a Spot XRP ETF could significantly impact XRP adoption by making the cryptocurrency more accessible to institutional investors, potentially boosting its liquidity and market value.
The SEC typically responds to S-1 filings within 30 days, but the approval process often extends to several months. If the current filings follow historical trends, decisions on Spot XRP ETFs could come as early as Q1 or Q2 of 2025.
