Pro-Crypto Leadership Signals Hope for XRP ETFs in 2025

The crypto world is abuzz as XRP enthusiasts anticipate a breakthrough: the approval of XRP ETFs. Optimism surged following SEC Chair Gary Gensler's resignation announcement, effective January 20, 2025, coinciding with President-elect Donald Trump’s inauguration.

Hopes are further fueled by the expected nomination of Paul Atkins, known for his pro-crypto stance, as Gensler’s successor. With Bitcoin and Ether ETFs already driving billions in inflows, XRP holders are optimistic 2025 could bring ETF approval and a wave of institutional investment.

As of December 8th, 2024, XRP ranks as the third-largest cryptocurrency by market cap on CoinMarketCap, boasting a valuation of $145 billion. It has skyrocketed 305% year-to-date, far outperforming Bitcoin (+125%) and Ether (+69%).

XRP ETFs Filings Are Piling Up

The race for XRP ETFs has intensified as several prominent asset managers vie to be the first to launch this innovative investment product. The flurry of filings in late 2024 demonstrates growing confidence in XRP's regulatory status and increasing institutional interest. Here's a closer look at the key players and their strategies:

Bitwise Asset Management

Bitwise took the lead by filing the first spot XRP ETF application in October 2024. The proposed Bitwise XRP ETP aims to hold XRP directly, offering investors pure exposure to the cryptocurrency's price movements[9]. Bitwise CEO Hunter Horsley emphasized the company's belief in blockchain technology's potential to create new, apolitical monetary assets.

Canary Capital Group

Hot on Bitwise's heels, Canary Capital filed for the Canary XRP ETF on October 9, 2024. Founded just a month earlier by Steven McClurg, formerly of Valkyrie Funds, Canary Capital cited growing investor demand and a more progressive regulatory environment as key motivators for their filing.

21Shares

On November 1, 2024, 21Shares entered the fray by filing a Form S-1 for its Core XRP Trust. Unlike some competitors, 21Shares' proposal offers indirect market access rather than direct XRP exposure. The trust plans to list its shares on the Cboe BZX Exchange, with Coinbase Custody Trust Company slated to act as the XRP custodian.

WisdomTree

WisdomTree joined the competition on December 2, 2024, filing for the WisdomTree XRP Fund. This ETF aims to track XRP's price through shares listed on the Cboe BZX Exchange. WisdomTree's approach includes partnering with Coinbase affiliates for prime execution and custody services, while The Bank of New York Mellon will serve as the fund's administrator.

Grayscale

Though not directly related to XRP ETFs, Grayscale recently announced on X that its Grayscale XRP Trust is now available to qualified investors seeking exposure to XRP. The trust supports the distributed XRP Ledger, widely used for cross-border payments.

A few months ago, Grayscale also filed to convert one of its long-standing investment vehicles—holding assets like Bitcoin and XRP—into an ETF. While approval seems unlikely in the near term, such a move would enable the ETF to trade on an exchange, offering investors diversified exposure to multiple digital assets in a single fund.

XRP ETPs Are Already Available in Europe

While the U.S. and Canada often lead in ETF innovation, Europe has taken the spotlight in the crypto ETP space almost a decade ago, pioneering and expanding these products. European investors already have access to dozens of single-cryptocurrency ETPs, including XRP, as well as diversified crypto baskets, showcasing the region's progressive approach to crypto investment.

Here are the lists of XRP ETPs available:

• CoinShares Physical XRP
• WisdomTree Physical XRP
• ETC Group Physical XRP ETC
• 21Shares Ripple XRP ETP

Over the past month, these XRP ETPs saw over $250 million in net inflows.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.