Why Xrp Etf Proposals Are Increasing And What Is Keeping Other...

The cryptocurrency market is now entering a new stage in which large institutional investors are looking beyond just Bitcoin (BTC) and Ether (ETH). One of the strongest signs of this shift is the rapid increase in applications for US spot XRP (XRP) exchange-traded funds (ETFs).

Asset management companies are submitting proposals for XRP ETFs one after another. However, many other cryptocurrency projects remain on the sidelines. There are several reasons for the recent increase in XRP ETF proposals:

Greater regulatory and legal clarity: A July 2023 court ruling significantly altered the US regulatory view of XRP. The ruling classified XRP as not a security when sold on exchanges to the public but as a security in direct sales to institutions. This decision, along with the August 2025 settlement between the SEC and Ripple, the entity behind XRP, established regulatory clarity. It enabled freer trading of XRP on US exchanges and opened the door for new products like the ProShares Ultra XRP ETF.

Institutional investors betting big: Major financial institutions have integrated XRP into their portfolios, showing strong institutional support. Several spot XRP funds are in the pipeline at the Depository Trust and Clearing Corporation. The first XRP ETF from Canary Capital attracted $250 million on its opening day and encouraged other issuers to follow.

Investor demand for crypto exposure beyond Bitcoin and Ether: At a time when Bitcoin and Ether ETFs are well established, investors are seeking ways to gain exposure to other cryptocurrencies in a regulated manner. XRP has high trading volume, a large market value and a long track record, which positions it as a strong choice for a regulated altcoin ETF.

Potential for fresh liquidity and price impact: When ETFs attract money, they increase demand for the underlying asset, which can improve liquidity and support more stable prices over time. XRP ETFs could attract significant amounts of new investment and strengthen the underlying cryptocurrency.

Although interest in XRP ETFs is growing quickly, many asset managers are still unwilling to launch ETFs tied to other cryptocurrencies. This can be traced to structural and regulatory limitations.

Ongoing legal uncertainty for many tokens: Many cryptocurrencies still face regulatory ambiguity, which makes ETF approval riskier. Without a clear classification of whether a token is a security, a commodity or something in between, issuers risk regulatory pushback or outr

Source: CoinTelegraph