What to Know:
- XRP ETF discussions are gaining traction beyond Crypto Twitter, now influencing Wall Street trading desks.
- Analysts predict potential inflows exceeding $1 billion within the first few months of a spot XRP ETF launch.
- SEC regulatory adjustments are streamlining the approval process for spot crypto ETFs, paving the way for altcoin products.
The potential for a spot XRP ETF is becoming a serious topic among investors and traders. Discussions around an XRP (XRP) exchange-traded fund (ETF) have moved beyond social media and are now being actively considered by Wall Street trading desks. This shift is influenced by evolving market dynamics and regulatory changes.
ETF specialists like Nate Geraci and Bitwise CIO Matt Hougan suggest that the market may be underestimating the potential demand for a spot XRP ETF. Geraci has cautioned that investors are “severely” underestimating the potential inflows, while Hougan estimates that such a fund could accumulate around $1 billion in assets within its initial months. These projections are based on the increasing accessibility and appeal of crypto ETFs to a broader range of investors.
The SEC’s adoption of generic listing standards has shortened the approval pathway for certain spot crypto ETFs, facilitating the listing of altcoin products. This regulatory evolution doesn’t guarantee immediate approval for an XRP ETF, but it signifies a more structured and potentially faster review process. Several well-known issuers have already filed or indicated their intent to launch an XRP ETF, reflecting growing confidence in the asset’s market readiness.
The bullish outlook for an XRP ETF is supported by several factors, including enhanced distribution channels, established infrastructure, and XRP’s unique value proposition in cross-border payments. The existing infrastructure for Bitcoin and Ether ETFs can be leveraged for other spot products, streamlining the launch process. XRP’s focus on cross-border payments offers a distinct investment narrative compared to Bitcoin’s “digital gold” positioning.
Talk of a spot $XRP ETF has moved from Crypto Twitter to Wall Street trading desks.
Two factors are driving it.
First, ETF specialists @NateGeraci and @Matt_Hougan say the market is underestimating demand for a spot $XRP ETF.
Second, the US market infrastructure for spot crypto…
— Joe Light (@joelight) November 7, 2025
While the path to an XRP ETF is clearer than in previous years, it is not without potential obstacles. The SEC will assess the resilience of spot XRP markets against manipulation, the robustness of custody arrangements, and the reliability of pricing sources. Overcoming these regulatory hurdles is essential for securing approval.
In conclusion, the possibility of a spot XRP ETF is becoming increasingly tangible, driven by regulatory advancements and growing institutional interest. While approval is not yet assured, the groundwork has been laid for a product that could broaden access to XRP for a wider range of investors.
Source: Original article
