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Ripple’s XRP may soon join Bitcoin and Ethereum in the exclusive club of cryptocurrencies with spot exchange-traded funds (ETFs) approved in the United States.
ETF analyst Nate Geraci predicts spot-based XRP and Solana exchange-traded funds will gain approval in 2025, driven by the incoming Trump administration’s crypto-friendly policies.
The regulatory shift stems from key appointments in Trump’s administration. Trump’s team includes Paul Atkins as the new head of the Securities and Exchange Commission (SEC), the main investment regulator. Experts expect Atkins to be more lenient than current SEC leaders. Trump also created a new position called “Crypto and AI Czar,” filled by David Sacks, to help make cryptocurrency rules more business-friendly.
Ripple President Monica Long shares this optimism. “I think we will see more crypto spot ETFs this year coming out of the US, and I think XRP is likely to be next in line after Bitcoin and Ether,” she says. “We think, especially with the administration change, the approvals of those filings will accelerate.”
The prediction comes as multiple asset managers, including WisdomTree, Bitwise, Canary Capital, and 21Shares, have filed applications for XRP ETFs with the SEC. The proposed funds would track XRP’s spot price, making it easier for retail investors to participate without directly buying tokens.
Market response shows growing confidence in the prediction. XRP’s value has increased more than 300% since Trump’s election victory. Ripple reports a surge in U.S. business deals, signing more contracts in the last six weeks of 2024 than in the previous six months.
However, some analysts remain cautious. Bloomberg’s Eric Balchunas suggests Litecoin or Hedera might receive ETF approval before XRP. Balchunas cites ongoing regulatory uncertainties with the SEC as a bottleneck. BlackRock, the world’s largest investment company, isn’t planning to create XRP investment products yet, even though their Bitcoin fund has been successful.
The SEC’s upcoming decisions could reshape how Americans invest in digital assets. Final approvals could potentially set a precedent for future cryptocurrency investment products.
