Why the number of XRP ETF proposals is growing and what's holding other issuers back

XRP Surge: The Next Frontier in Crypto Finance

The cryptocurrency market is currently entering a novel stage where immense institutional investors are looking beyond Bitcoin (BTC) and ether (ETH). One of the strongest signs of this change is the rapid boost in requests for US spot XRP (XRP) exchange-traded funds (ETFs).

Asset management companies are submitting proposals for XRP ETFs one by one. However, many other cryptocurrency projects remain on the sidelines. There are several reasons for the recent surge in XRP ETF proposals:

Greater regulatory and legal transparency: The July 2023 court ruling significantly changed the US regulatory approach to XRP. The ruling classified XRP not as a security when sold publicly on exchanges, but as a security when sold directly to institutions. This decision, along with the August 2025 settlement between the SEC and Ripple, the entity behind XRP, provided regulatory clarity. This allowed XRP to be traded more freely on U.S. exchanges and opened the door to novel products such as the ProShares Ultra XRP ETF.
Institutional investors are making large bets: Major financial institutions have integrated XRP into their wallets, showing robust institutional support. Several XRP spot funds are in the pipeline at the Depository Trust and Clearing Corporation. Canary Capital’s first XRP ETF attracted $250 million on opening day and encouraged other issuers to follow suit.
Investor demand for exposure to cryptocurrencies beyond Bitcoin and Ether: With Bitcoin and Ether ETFs already established, investors are looking for ways to gain exposure to other cryptocurrencies in a regulated way. XRP has high trading volume, high market value, and long history, making it a robust choice for a regulated altcoin ETF.

Potential for fresh liquidity and price impact: When ETFs attract money, they boost demand for the underlying assets, which can improve liquidity and provide more stable prices over time. XRP ETFs can attract significant amounts of novel investment and strengthen the underlying cryptocurrency.

SEC vs. Ripple case

Reasons why other cryptocurrency issuers are lagging behind

While interest in XRP ETFs is growing rapidly, many asset managers are still reluctant to launch ETFs tied to other cryptocurrencies. This can be attributed to structural and regulatory constraints.

Continued legal uncertainty for many tokens: Many cryptocurrencies still face regulatory uncertainties, which makes ETF approval riskier. Without a clear classification of whether a token is a security, commodity or something in between, issuers risk regulatory opposition or outright rejection.
Strict supervision, compliance and market structure requirements: A cryptocurrency spot ETF requires secure institutional custody, regular audits, protection against market manipulation, robust cybersecurity, and full transparency. Many tokens lack the infrastructure and history necessary to meet these standards.
Insufficient liquidity and trading volume: ETFs require regular trading activity to maintain stable prices and facilitate capable trading. Cryptocurrencies outside the top few do not have enough daily trading volume to support an ETF without causing immense price swings or trading problems.
High volatility and reputational risk: Institutions prefer assets that behave more predictably. Many alternative coins are too volatile and lack robust fundamentals, causing issuers to worry about reputational risks or potential financial losses.
High cost of creating and launching an ETF: Building the infrastructure needed to launch and maintain cryptocurrency ETFs is pricey. For smaller issuers or tokens with uncertain demand, the costs often outweigh the possible benefits.

XRP benefits from greater adoption and a stronger market infrastructure than most alternative coins. Its high liquidity, clearer regulatory position and growing institutional interest make it much more suitable for an ETF after Bitcoin and Ether.

Did you know? XRP Ledger is one of the fastest major blockchains, completing transactions in seconds. This speed makes it well suited for this purpose cross-border paymentswhere time-honored bank transfers may take several days to clear.

Impact of successful XRP ETFs on the market

If XRP ETF proposals later receive regulatory approval and gain significant institutional participation, they could have a positive impact on the market.

Immense inflows could improve liquidity: Regulated ETFs provide an straightforward way for novel capital to enter the market. Significant inflows could flow into XRP and result in greater market depth and potentially more stable prices.
Easier access for time-honored investors: ETFs eliminate the need to directly manage wallets and private keys. This makes it easier for financial advisors, pension funds and ordinary investors to incorporate XRP into their portfolios.
Model of future altcoin ETFs: Success with XRP may encourage consideration of similar products in lieu of other highly liquid tokens that meet regulatory standards. This could prompt regulators to create clearer rules for the broader cryptocurrency sector.

While the advantages of successful XRP ETFs are significant, there are issues that need to be taken into account. Possible obstacles include regulatory delays or pushbacks, lower-than-expected investor interest, too many competing ETFs, and macro shocks that impact cryptocurrency markets.

Did you know? Created in 2012, XRP predates popularization Bitcoin halving cycles. Unlike BTC z emissions based on miningXRP launched with full supply (but distributed gradually), which gave it a unique economic model in the cryptocurrency ecosystem.

How XRP ETFs Can Unlock Broader Entry of Altcoins into Established Finance

The rapid growth in the number of XRP ETF offerings could represent a key turning point for the cryptocurrency industry.

As investor appetite expands beyond Bitcoin and Ether, XRP is well-positioned to play a role in the next wave of regulated cryptocurrency investment products. Few other tokens currently demonstrate the same mix of liquidity, legal transparency and institutional interest. Until more projects reach the same level, issuers will remain cautious.

If successful, XRP ETFs could significantly impact both XRP’s market position and the way alternative cryptocurrencies enter time-honored finance. This could potentially open the door to wider adoption of ETF-based solutions in the future.