The Rise of XRP ETF Applications
The Securities and Exchange Commission (SEC) has seen a surge in XRP exchange-traded fund (ETF) applications in recent weeks, indicating a growing interest in traditional crypto investment vehicles. Major issuers like Canary Capital, Grayscale, Bitwise, WisdomTree, 21Shares, and Coinshares have submitted a total of six applications for XRP ETFs.
New ETF Proposals
- Coinshares and Grayscale have both proposed XRP and Litecoin ETFs.
- Grayscale has initiated a 21-day comment period for its XRP ETF application, allowing public feedback.
- Several proposals for Solana ETFs are also pending, including submissions from 21Shares, Bitwise, Grayscale, VanEck, and Canary.
The Shift Towards ETFs
The recent influx of ETF applications reflects a more favorable regulatory environment for crypto investments. With the approval of Bitcoin and Ethereum ETFs towards the end of Gary Gensler’s term as SEC Chair, and the appointment of pro-crypto official Mark Uyeda, the regulatory landscape in the US is expected to become more crypto-friendly. Ripple Labs’ legal victory against the SEC under Gensler’s leadership has also positioned the company for growth.
President Trump’s executive order to establish a sovereign wealth fund that includes cryptocurrencies indicates a potential inclusion of XRP alongside Bitcoin. Ripple CEO Brad Garlinghouse has advocated for multiple cryptocurrencies to be part of the fund, highlighting XRP’s potential candidacy.
XRP as a Reserve Candidate
An approval of an XRP ETF could solidify the cryptocurrency’s position as a reserve asset. With XRP currently trading at $2.48, it is the third-largest crypto by market cap.
