The growing momentum behind cryptocurrency exchange-traded funds (ETFs) in traditional financial markets has turned significant attention toward the potential approval of an XRP ETF. With Bitcoin and Ethereum spot ETFs already gaining traction in the U.S. market, investors and institutions are now closely watching developments around a spot ETF for Ripple’s native digital asset—XRP.
An XRP ETF could serve as a pivotal gateway for mainstream investors seeking regulated exposure to XRP without directly managing private keys or navigating crypto exchanges. As regulatory clarity improves following key court rulings, several major financial firms have taken formal steps to bring XRP-based investment products to market.
This article explores what an XRP ETF is, which companies are leading the charge in filing applications with the U.S. Securities and Exchange Commission (SEC), and how these developments could shape the future of digital asset adoption in global finance.
Understanding the XRP ETF Concept
An Exchange Traded Fund (ETF) is a marketable security that tracks an underlying asset, index, or basket of assets and trades on stock exchanges like a regular stock. In the case of a spot XRP ETF, the fund would hold actual XRP tokens as its underlying asset, providing investors with direct exposure to price movements.
Unlike buying and storing XRP on a cryptocurrency exchange, investing through an ETF allows individuals to gain exposure via traditional brokerage accounts—eliminating concerns about wallet security, private key management, or exchange risks.
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For traditional investors hesitant to enter the volatile crypto space, an SEC-approved XRP ETF would offer a familiar, regulated pathway. It could also enhance liquidity, improve price discovery, and strengthen investor confidence in XRP as a legitimate digital asset.
Key Companies Filing for XRP ETF Approval
Following the landmark regulatory decision in SEC v. Ripple Labs, which clarified that XRP is not inherently a security when sold to retail investors, multiple asset managers have filed preliminary registration forms (Form S-1) with the SEC to launch spot XRP ETFs.
Here are the leading firms actively pursuing XRP ETF approval:
WisdomTree
WisdomTree, a well-established financial services firm with prior success in launching crypto-linked products—including the WisdomTree Bitcoin Fund (BTCW)—filed its S-1 form for an XRP ETF on December 2, 2024. The proposed fund aims to list on the Cboe BZX Exchange.
While specific details such as the ticker symbol and custodial partner remain undisclosed, WisdomTree's experience in regulated crypto products positions it as a strong contender in the race for approval.
21Shares
Swiss-based asset manager 21Shares submitted its Form S-1 on November 1, 2024, for the “21Shares Core XRP Trust.” If approved, the trust will be listed on Cboe BZX, with Coinbase Custody serving as the designated custodian.
Notably, 21Shares previously launched an XRP ETP (Exchange Traded Product) in Switzerland in 2019, which at its peak managed over $54 million in assets. This track record demonstrates existing demand and operational capability for XRP-based financial instruments.
Canary Capital
Led by Steven McClurg, former Chief Investment Officer of Valkyrie Investments, Canary Capital entered the XRP ETF landscape in early December 2024 with its filing for the “Canary XRP ETF.” The firm emphasizes accessibility, aiming to allow traditional investors to gain exposure to XRP through standard brokerage platforms.
Canary’s strategy focuses on bridging institutional finance with blockchain innovation, leveraging McClurg’s deep experience in digital asset investing.
Bitwise
Bitwise became one of the earliest movers by filing plans for an XRP-based ETF in October 2024—shortly after increased regulatory clarity emerged around XRP’s status. Known for its rigorous research and advocacy for crypto inclusion in mainstream portfolios, Bitwise is positioning itself as a thought leader in the push for broader digital asset adoption.
Market analysts suggest that political factors—including outcomes from the 2024 U.S. presidential election—may influence the SEC’s stance on approving new crypto ETFs beyond Bitcoin and Ethereum.
Ripple’s Strategic Expansion: The RLUSD Stablecoin Initiative
Beyond ETF development, Ripple is advancing its ecosystem through the upcoming launch of Ripple USD (RLUSD)—a U.S. dollar-pegged stablecoin designed to enhance cross-border payment efficiency.
According to Monica Long, President of Ripple, RLUSD will be backed by U.S. dollar deposits, short-term U.S. Treasury bills, and other low-risk assets. The stablecoin is expected to go live in late 2024 and will operate across multiple blockchain networks to support seamless international transactions.
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RLUSD is expected to increase capital efficiency within RippleNet, attract developers building decentralized applications (dApps), and further integrate Ripple into real-world financial use cases—complementing the utility of XRP itself.
Why an XRP ETF Matters for the Crypto Market
The potential approval of a spot XRP ETF carries significant implications:
- Institutional Adoption: A regulated ETF lowers barriers for pension funds, mutual funds, and insurance companies to invest in XRP.
- Market Legitimacy: SEC approval would reinforce XRP’s classification as a non-security in certain contexts—a major win after years of legal uncertainty.
- Liquidity & Volatility Reduction: Greater institutional participation can lead to improved trading volumes and reduced price swings.
- Global Competitiveness: The U.S. risks falling behind other markets if it delays innovation; timely approvals keep American investors at the forefront.
With over 500 financial institutions already using RippleNet for cross-border settlements, integrating XRP through accessible investment vehicles aligns with broader trends toward digital finance transformation.
Frequently Asked Questions (FAQ)
What is XRP?
XRP is a digital asset created by Ripple Labs to enable fast, low-cost cross-border payments. It operates on the decentralized XRP Ledger, which settles transactions in under four seconds with minimal energy consumption.
What is an XRP ETF?
An XRP ETF is an exchange-traded fund that holds XRP as its underlying asset. Investors can buy shares of the ETF on traditional stock exchanges, gaining exposure to XRP’s price performance without owning or storing the actual cryptocurrency.
When will the XRP ETF be approved?
There is no confirmed timeline for approval. The SEC typically takes months to review filings, and decisions may depend on regulatory sentiment post-2024 elections. Initial rulings could come in mid-to-late 2025.
Is XRP a security?
In July 2023, a U.S. federal court ruled that XRP is not a security when sold to retail investors on exchanges. However, institutional sales were deemed securities offerings. This partial ruling provided crucial clarity that enabled ETF filings.
Can I invest in XRP outside the U.S.?
Yes. Many global exchanges offer direct trading of XRP. Additionally, some international markets already have XRP-linked investment products available, such as ETPs listed in Europe.
How does RLUSD differ from other stablecoins?
RLUSD is designed specifically for enterprise-grade cross-border transactions within Ripple’s network. Unlike general-purpose stablecoins, RLUSD integrates with RippleNet’s payment rails and prioritizes compliance, transparency, and institutional usability.
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Final Thoughts
The convergence of regulatory progress, product innovation, and rising institutional interest paints a promising picture for XRP’s future. While the final decision on ETF approvals rests with regulators, the momentum is undeniable.
With major players like WisdomTree, 21Shares, Canary Capital, and Bitwise pushing forward—and Ripple expanding its ecosystem through initiatives like RLUSD—the stage is set for 2025 to become a transformative year for XRP adoption.
Whether through ETFs or stablecoins, the goal remains clear: bringing blockchain-based financial solutions into the mainstream with trust, scalability, and regulatory alignment.
Keywords: XRP ETF, Ripple USD RLUSD, spot XRP ETF, cryptocurrency ETF, regulated crypto investment, cross-border payments blockchain, institutional crypto adoption