In the United States, approximately 11 applications for XRP-based ETFs are waiting for decisions from the Securities and Exchange Commission (SEC). Analysts believe there is a 95% chance of at least one being approved.
Advantages of XRP Over Rivals
Experts suggest that XRP may be prioritized over competitors such as Solana or Litecoin. One reason is a federal court ruling that XRP is not classified as a security when traded on secondary markets. This ruling gives XRP a clearer legal standing compared to other digital assets still under regulatory scrutiny.
The SEC also faces a firm deadline. By October 18, it must decide whether to approve Grayscale's request to convert its XRP Trust into a spot ETF.
Industry Signals Indicating Change
Institutional experts also expect broader progress on crypto ETFs in the coming months. Nate Geraci, President of NovaDius Wealth Management, indicated that the "floodgates" for spot crypto ETFs could open within the next two months.
He noted that ETFs for XRP, Solana, and Litecoin are likely to follow suit, and a comprehensive regulatory framework for spot products should soon be in place. Geraci also pointed out that approval of Ethereum staking ETFs could arrive at any moment. With the Clarity Act currently under discussion in the US Senate, he predicted that the remainder of the year will be eventful for the digital asset industry.
Why XRP Appeals to Institutional Investors
Analysts assert that XRP’s design offers it an edge against Bitcoin and Ethereum. In Bitcoin, rising prices lead to increased mining costs, consolidating power among the largest operators. In Ethereum’s proof-of-stake model, those holding and staking more coins gain greater influence.
On the XRP Ledger, ownership of additional tokens does not result in enhanced control over the network. This reduces the likelihood that a small number of wealthy participants can dominate the system. The network is also fast, cost-efficient, and has a long history of reliable performance.
These attributes have attracted the attention of major financial players. WisdomTree recently described XRP as a “tactical onshore play” for professional portfolios.
Despite positive developments, XRP's price has fluctuated, occasionally dipping to lower levels. However, this behavior is typical before significant rallies, with ETF approval seen as a potential trigger for stronger growth.
Given the current expectations surrounding ETF approvals and the unique advantages presented by XRP, the upcoming months could be pivotal for its market and institutional investors.
