XRP has emerged as a frontrunner in the race for U.S. spot ETF approval, according to Kaiko Research. With ten active ETF applications currently under review by the SEC, XRP outpaces Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC), all of which have fewer filings. Here’s why XRP could be the next altcoin to secure a U.S. spot ETF approval:
XRP’s Strong Liquidity Sets It Apart
XRP stands out due to its robust market liquidity, a critical factor for ETF approval. As the altcoin with the highest “1% market depth” on major exchanges, XRP’s buying and selling activity is particularly close to market prices—an important requirement for spot ETFs. XRP’s market strength has only grown, surpassing Solana and even doubling Cardano by the end of 2024, further enhancing its chances for ETF approval.
Teucrium’s Leveraged XRP ETF Approval Adds Confidence
A notable development in XRP’s ETF journey was the approval of Teucrium’s leveraged XRP ETF (XXRP), which aims to double XRP’s daily returns. Industry experts believe that if a leveraged product like XXRP is approved, the path for a basic spot XRP ETF should be much smoother.
Also Read: XRP Price Eyes $2.17 Resistance Amid Bullish Momentum — Elliot Wave Analysis
New SEC Leadership Could Speed Approval
The shift in SEC leadership—following the departure of Gary Gensler and the appointment of pro-crypto chair Paul Atkins—could result in more crypto-friendly ETF decisions. This change could lead to faster approval processes for XRP and other digital assets, with experts predicting a more favorable outlook for the cryptocurrency sector.
80% Chance of XRP ETF Approval by 2025
Prediction market Polymarket estimates close to 80% chance that XRP will receive a spot ETF approval by the end of 2025, a significant forecast in light of the recent resolution of Ripple’s legal battles with the SEC. As the market watches closely, XRP’s future as the next major crypto ETF could soon become a reality.
The SEC is expected to respond to Grayscale’s XRP ETF application by May 22, with experts eagerly anticipating the outcome of this pivotal date.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
