XRP ETF Anticipation Grows Amid Regulatory Shift
Speculation is mounting in the crypto markets as traders and institutional watchers bet big on the potential approval of a spot XRP exchange-traded fund (ETF) a move many believe could be a watershed moment for Ripple and its XRP token.
The renewed interest follows a string of regulatory shake-ups in Washington, including the disbandment of the SEC’s crypto enforcement team and a more favourable posture from the new crypto policy advisory board led by former Commissioner Paul Atkins.
While no official application for an XRP ETF has been confirmed, insiders suggest that at least two major asset managers are preparing to file in the coming weeks contingent on the resolution of Ripple’s long-running legal standoff with the Securities and Exchange Commission (SEC).
“We’re closer than ever to XRP getting ETF status,” said Clara Meade, digital asset strategist at FuturesScope Capital. “The political climate has shifted. The legal clarity is improving. And there’s clear demand from institutions.”
A Legal Cloud Lifting
Ripple’s 2020 battle with the SEC over whether XRP constituted an unregistered security has cast a long shadow over the token’s marketability. But with a partial legal win secured in 2023 and further litigation expected to wrap up this year sentiment is turning bullish.
The judge's earlier ruling, which stated that retail sales of XRP are not securities, laid crucial groundwork for ETF eligibility. Analysts believe that a settlement or a complete dismissal could provide the legal clarity needed to fast-track a fund.
Traders Rush In
The anticipation has already had a market impact. XRP has rallied over 12% in the last week, briefly surpassing the $2.10 mark before consolidating near $1.95. Derivatives markets show rising open interest in XRP futures, and options data indicates traders are pricing in higher upside volatility by mid-year.
On crypto prediction markets like Polymarket and Kalshi, the probability of a spot XRP ETF approval by Q4 2025 has jumped from 22% to 47% in the past two weeks.
“Traders are positioning early,” said Will Tan, head of research at BlockCap Asia. “An ETF would open the door to institutional capital and put XRP back in the top 3 coins by volume.”
What a Spot XRP ETF Would Mean
A spot ETF would allow investors to gain exposure to physical XRP, rather than futures contracts, through traditional brokerage accounts without needing to manage crypto wallets or private keys.
The move could unlock significant inflows from RIAs, pensions, and hedge funds previously barred from holding XRP directly due to compliance risks.
With Bitcoin and Ethereum ETFs already trading in the U.S., many see XRP as the next natural contender, especially given its global remittance use case and rising institutional awareness.