The cryptocurrency market buzzes with speculation about an imminent XRP exchange-traded fund (ETF) launch. Following the success of spot Bitcoin ETFs, investors are now eyeing altcoins, with XRP emerging as a top contender. The latest push for an XRP ETF comes from crypto influencer Ben “BitBoy” Armstrong, who highlighted the surging performance of Grayscale’s XRP Trust as a key indicator.
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Grayscale’s XRP Trust Sparks Optimism
Armstrong’s bullish prediction on December 13 emphasized the exceptional gains of Grayscale’s XRP Trust. Since its September 2024 launch, the trust’s share price skyrocketed from $10.85 to $47.48—a 300% increase. Armstrong stated, “Good sign an XRP ETF is coming,” pointing to the trust’s rapid growth as evidence of strong institutional demand.
The soaring value of Grayscale’s XRP Trust could boost institutional investor confidence, creating momentum for an XRP ETF. Additional tailwinds include a projected pro-crypto stance from the incoming Trump administration and Ripple’s partial victory against the U.S. Securities and Exchange Commission (SEC) in July 2023. Judge Analisa Torres’ ruling that XRP’s secondary market sales do not classify as securities marked a critical win for the asset.
SEC’s Role in ETF Approval
Despite the positive signs, the SEC’s review process remains a key hurdle. Historically, the agency has 240 days to respond to an ETF application. Given that the most recent XRP ETF applications were filed in November 2024, a decision may not come until July 2025. This timeline reflects the SEC’s standard review period for ETF proposals.
Related article: XRP Trust by Grayscale: A Secure Gateway for Accredited Investors
Bloomberg analyst James Seyffart warns that altcoin ETFs might face a lengthier review process. He argues that altcoins like XRP may need an established Commodity Futures Trading Commission (CFTC)-regulated futures market before receiving approval. However, optimism persists as at least four asset managers—Canary Capital, 21 Shares, Bitwise, and WisdomTree—have already applied for spot XRP ETFs.
Momentum for an XRP ETF continues to build, driven by Grayscale’s success, regulatory developments, and growing institutional interest. While the SEC’s decision could take time, the involvement of prominent asset managers and the market’s rising confidence suggest that an XRP ETF launch may be on the horizon.
