XRP ETF Explained: Top 9 Funds Awaiting SEC Green Light

The growing interest in an XRP ETF has taken center stage in the crypto investment landscape. As institutional investors continue exploring crypto exposure beyond Bitcoin and Ethereum, attention is now shifting towards XRP, particularly with multiple asset managers vying for regulatory approval of the first XRP ETF in the United States.

Over recent months, the speculation around an XRP ETF has intensified, especially following a landmark decision by a federal judge that gave clarity to XRP’s legal status. This ruling has emboldened several financial firms to officially file or prepare for an XRP exchange-traded fund, hoping to capitalize on Ripple’s growing market credibility.

Why Are Asset Managers Betting on an XRP ETF?

With regulatory progress and increased crypto adoption, asset managers see XRP as a compelling investment vehicle. Its utility in cross-border payments and the recent court declaration that XRP is not a security when sold to the public has positioned it as a potential ETF candidate.

Moreover, recent applications and interest from high-profile companies show that institutional players are preparing for an XRP ETF launch. Much like the progression of the Bitcoin and Ethereum ETFs, the strategy now includes waiting for the U.S. Securities and Exchange Commission (SEC) to extend the green light.

Top 9 Financial Institutions Eyeing an XRP ETF

Based on industry observations and public information, these nine firms are currently showing strong interest in launching or backing an XRP ETF:

• BlackRock: Already a significant player with Bitcoin and Ethereum ETF proposals, BlackRock is rumored to be considering an XRP ETF depending on regulatory shifts.
• Grayscale: Known for its crypto trust products, it has shown persistent interest in expanding beyond BTC and ETH, eyeing XRP as an expansion target.
• Fidelity: Having entered the crypto market with substantial investments, Fidelity’s move into XRP ETF space could be strategic if the SEC opens the gate.
• ARK Invest: With Cathie Wood’s bullish stance on digital assets, ARK is predicted to pursue ETF diversification including XRP.
• Galaxy Digital: With a vast footprint in crypto, Galaxy could be preparing groundwork for future ETF product offerings related to XRP.
• VanEck: This traditional ETF heavyweight has repeatedly sought approval for crypto ETFs and could soon file for XRP exposure.
• Bitwise: A well-known name in digital asset investment, Bitwise may seek to include XRP among its broader crypto ETF range.
• Invesco: Their collaboration with Galaxy Digital on a Bitcoin ETF could potentially extend to XRP in due course.
• WisdomTree: Consistently maintaining a presence in crypto ETF filings, WisdomTree could see XRP as the next logical step.

What’s Holding Back the XRP ETF?

The main barrier is regulatory clarity. Although XRP received partial legal validation when a judge ruled its programmatic sales weren’t securities, the SEC has not yet given a final decision on whether these are sufficient for ETF approval.

Additionally, the SEC is still reviewing the broader framework for digital asset ETFs. Until the agency provides definitive guidance, XRP ETF applicants remain in a holding pattern. However, experts are optimistic that an eventual approval is likely given XRP’s increasing legitimacy and legal wins.

Ripple’s Role in the Process

Ripple, the blockchain company behind XRP, has been instrumental in shaping the narrative. Its proactive legal defense and ongoing partnerships with global financial entities support XRP’s utility and legitimacy. Ripple’s clarity following the court judgment gives ETF hopefuls more confidence that regulatory risk is reducing.

The industry continues to wait for final SEC commentary on whether XRP’s legal standing is sound enough to support exchange-traded products in the U.S.

Until then, investors, traders, and institutions continue speculating on who will be first to market once approval lands.

Related: $2.3 Trillion Liquidity Shock: Franklin Templeton Says XRP Is Next in Line for Massive Inflows

For updates, see announcements from Ripple.