ETF filing brings XRP back to the spotlight
When financial firms introduce crypto exchange-traded funds (ETFs), it often signals that these assets are moving into the mainstream. Bitcoin (BTC) and Ether (ETH) ETFs are already available in the US, raking in billions from both institutional and retail investors who prefer exposure without directly holding the tokens.
Now, attention seems to be shifting towards XRP (XRP), the native digital asset of Ripple’s payment network.
At first glance, XRP might not appear as a strong contender. After all, it’s spent years battling the US Securities and Exchange Commission and lacks the cultural weight of Bitcoin or Ether. Yet, notable asset managers have filed ETF applications, and analysts are divided on whether the market will respond positively.
Nate Gelach, who monitors the ETF landscape, suggests that skeptics may be underestimating potential demand. He draws parallels to the early doubts surrounding Bitcoin and Ether ETFs.
This article will discuss the funding behind XRP’s position as a dark horse on Wall Street, despite its past turmoil and branding issues. If ETFs get approved, it may just surprise the naysayers.
Did you know? In July 2023, a US court ruled that XRP itself is not considered a security when sold in the secondary market.
XRP ETF?
The potential for a spot XRP ETF has gained attention as regulators review numerous crypto fund applications.
Currently, there are seven spot XRP ETF filings awaiting SEC review, with Solana leading the pack with eight. In total, there are 92 crypto proposals under scrutiny.
The list of applicants features some well-known names. The WisdomTree application faced a delay in August, while companies like 21Shares and Bitwise made multiple amendments aiming for fall deadlines, raising expectations for this autumn’s decision-making period.
Established managers like Grayscale, Franklin, and Canary Capital are part of the mix, alongside newcomers exploring more complex products, including leveraged and derivative-based XRP exposure.
Some firms are looking beyond simple price tracking. For instance, Amplify has proposed a fund that combines XRP exposure with a covered call strategy for generating yield.
This wave of filings and innovative products has drawn interest from various Web3 stakeholders.
Did you know? RippleNet, which utilizes XRP for liquidity, has already integrated with over 70 countries and more than 1,000 financial institutions globally.
What’s going on in October?
From October 18th to October 25th, 2025, the SEC is set to dominate discussions surrounding six major spot XRP ETF applications.
The packed calendar includes:
- Grayscale (October 18th)
- 21Shares (October 19th)
- Bitwise (October 20th)
- Canary (October 23rd)
- WisdomTree and CoinShares (October 25th).
Also at stake is Ripple’s National Bank Charter application, which is under review with the Office of the Secretary of the Currency. Approval here would allow Ripple to operate as a federally supervised banking institution, paving the way for regulated payment and custody services.
Why dual results matter
ETF approval and the bank charter: Analysts argue that success on both fronts could not only lead to increased investment in XRP but also institutionalize it as a credible asset.
Approval of either the ETF or the bank charter could still generate significant momentum. An ETF would reaffirm XRP as a legitimate investment product, while the banking charter would enhance confidence in its functionality. However, neither alone would achieve full legitimacy.
On the flip side, a dual rejection would hit sentiment hard. Optimism could wane, hindering US adoptions and pushing XRP back into a speculative space until new regulatory pathways emerge.
XRP, “Dark Horse” explained
The perception of XRP as a dark horse in the financial realm hinges on the belief that its demand remains widely underestimated.
Nate Gelach claims that “investor demand for spot XRP & SOL ETFs is being greatly underestimated,” noting how initial hesitations surrounding Bitcoin and Ether funds were all but forgotten once investor interest surged.
Market evidence supports this claim. The CME’s XRP futures are seeing rapid growth, indicating significant institutional involvement.
Estimates for ETF inflows also bolster this argument. For instance, Canary Capital’s CEO predicts $5 billion in initial demand, while JPMorgan analysts have pegged it at around $8 billion annually if approvals occur.
For context, investors have committed $380 million to XRP-related ETFs, showing that capital is poised to enter this asset class.
Innovation plays a part as well. Remember, Amplify’s ETF proposal aims to generate revenue through XRP options rather than sticking to straightforward price tracking.
Canary Capital, alongside Bitcoin, considers XRP one of the few crypto assets that “resonate with Wall Street professionals.”
Did you know? XRP became the second most traded cryptocurrency on Japan’s SBI VC Trade platform in April 2025, just behind Bitcoin, with Ether following closely.
Skepticism and risk
Despite the optimism, skepticism lurks around XRP’s ETF prospects, particularly among larger institutions.
For example, BlackRock has declined to pursue US spot XRP ETFs, citing regulatory uncertainties and limited client benefits. This hesitance from such a major player highlights that even industry giants remain unconvinced about XRP’s long-term viability.
Analysts are also cautious. One strategist has warned that launching an XRP ETF could signify the “beginning of the end,” suggesting that the product might struggle to maintain sustainable revenue or investor interest.
Market dynamics further complicate the scenario. XRP prices have fluctuated between $2.75 and $2.88, amidst liquidation events totaling over $19 billion linked to shifting on-chain activities.
Yet, institutional wallets have been accumulating; the value of XRP has climbed to nearly $928 million. This creates a delicate balance between speculative endings and strategic positioning.
Finally, the regulatory timeline remains uncertain. A verdict is anticipated by the latter half of 2025, but delays or denials could dampen optimism, disrupt trust, and slow down capital inflows.
The future of XRP hinges on the rulings this October and the outcome of Ripple’s bank charter application. Approval could thrust it into mainstream acceptance, while rejection could entrench long-standing doubts. Regardless, the next few months will be crucial.
