November 14 2025
Discussions about a spot XRP (XRP) exchange-traded fund (ETF) have moved from the informal atmosphere of Crypto Twitter to the serious trading floors of Wall Street. This exciting prospect comes as market dynamics shift and the potential of a crypto ETF is increasingly appearing on the radar of analysts and investors.
Two key factors are at play here. First, ETF specialists like Bitwise’s Nate Geraci and Matt Hougan are pointing out that the market is underestimating demand for a spot XRP ETF. Geraci has warned that investors are “severely” underestimating expected fund inflows. Hougan estimates the fund could reach $1 billion in assets in its first few months. Second, the infrastructure of the U.S. spot crypto fund market has evolved. The Securities and Exchange Commission (SEC) has adopted generic listing criteria that ease the path to approval of certain spot crypto ETFs. Exchanges have already begun listing alternative coin products under this new framework.
Of course, these developments don’t guarantee that an XRP ETF will be approved, but they do explain why the conversation has now become so serious.
A spot XRP ETF aims to hold XRP through a qualified custodian and issue shares that track the fund’s net asset value. This structure is crucial as it allows investors to incorporate XRP into their investment accounts, model portfolios for advisors, and retirement platforms, with appropriate reporting and tax treatment. This contrasts with futures-based products, which track derivatives rather than the underlying asset itself and may therefore deviate from spot prices. The SEC’s September 2025 amendment did not approve every crypto ETF, but it did create a uniform starting line rather than a lump sum of approvals.
In mid-September 2025, the SEC adopted generic listing criteria that allow major exchanges to list certain spot crypto exchange-traded products (ETPs) under a uniform regulatory framework, rather than through individual approvals. This change optimized the listing process but did not eliminate regulatory oversight for non-qualifying products. The subsequent government shutdown in October delayed the review process. Nevertheless, some spot alternative coin products, including Litecoin (LTC) and Hedera (HBAR), continued to move forward via existing routes. However, this should be viewed as an exception and not as a blanket approval.
For XRP, several high-profile issuers have already indicated their intention or filed documents. The timelines could still shift as the SEC considers three key questions: Are the markets sufficiently verifiable and resistant to manipulation? Are the safeguards and assurance arrangements robust? And do the pricing information and disclosures hold up in practice?
In summary: the road is open, there are products lining up, but so far there has been no approval for a US spot XRP ETF.
The positive outlook is based on three main factors. First, advisors prefer ETFs over trading accounts for their clients. An ETF opens the door to registered investment advisors and pension providers. Second, an infrastructure has already been established through authorized participants, market makers, and market monitoring agreements for Bitcoin and Ether (ETH) ETFs, which could also be expanded into other spot products. Third, XRP offers a complement to the existing narrative in the crypto space: its heavy focus on cross-border payments and settlement offers allocators a narrative distinct from Bitcoin’s “digital gold.” Based on this setup, Geraci and Hougan argue that initial demand has the potential to exceed expectations, potentially exceeding $1 billion initially. While this is a forecast and not a guarantee, it does clarify why trading floors are already modeling different scenarios.
Despite the generic criteria, approval isn’t a given. The SEC could still question whether spot XRP markets are sufficiently resilient to manipulation and whether monitoring is truly robust. It could also assess whether monitoring and insurance arrangements are sufficient, and whether pricing sources are reliable across different trading venues. Government shutdowns have created backlogs that could potentially delay decisions until later in the year. The road ahead is currently shorter than in 2023-2024, but it remains a journey with necessary checkpoints.
For investors outside the US, access to physically-backed ETPs that hold XRP directly already exists. Two of the largest are the 21Shares XRP ETP (AXRP), listed on the Swiss stock exchange, and CoinShares Physical XRP, available on several European exchanges. These are not US-based ETFs; they are locally regulated ETPs with varying investment protections and tax treatment. US investors can also purchase XRP on compliant cryptocurrency exchanges, but going this route comes with its own decisions around self-custody, counterparty opportunities, and fragmented trading venues.
Such a comparison is flawed. Bitcoin’s investment narrative revolves around scarcity and macro hedging, while XRP focuses on payment system infrastructure and fast settlement. Should an XRP ETF be launched, it certainly wouldn’t replace Bitcoin, but rather broaden the offering for advisors seeking payment-related allocation within traditional accounts. However, price levels and liquidity will continue to depend on the underlying spot markets and the ETF’s ability to accurately track them. Creation and redemption efficiency, spreads, and market-making depth all play a role.
Wall Street’s interest in an XRP ETF is more than just clickbait. The mechanics are well-known, the distribution channels are in place, and reputable analysts believe demand could be surprisingly strong. Nevertheless, SEC approval is a necessary step, and the timing can fluctuate due to personnel changes and market assessments. As you monitor this development, it’s crucial to separate the approval odds from the business case: pay attention to the filings, understand how the ETF will hold and price XRP, and be cognizant of the differences between US ETFs and non-US ETPs currently available.
How important is SEC approval for a spot XRP ETF?
SEC approval is crucial because it determines the legitimacy and accessibility of the ETF. Without this approval, a spot XRP ETF remains only a theoretical possibility.
What impact could an ETF have on the XRP price?
An approved ETF could bring significant capital inflows into XRP, potentially boosting its price by giving more investors the opportunity to invest in XRP through traditional financial channels.
What are the main differences between a US ETF and a non-US ETP?
A US ETF is subject to strict regulations and offers some protection for investors, while non-US ETPs have different legal and tax implications depending on the country in which they are listed.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
