XRP as Wall Street’s dark horse: Why some funds see it like Bitcoin
News Summary
XRP (Ripple) is back in the spotlight with multiple major asset managers filing for spot XRP ETFs, following the successful launches of Bitcoin and Ether ETFs in the US. Despite XRP's past legal battles with the US SEC and lower brand recognition compared to Bitcoin and Ether, analysts like Nate Geraci of The ETF Store believe demand for XRP ETFs is being severely underestimated. He points to CME XRP futures' open interest surpassing $1 billion, indicating genuine institutional engagement. Canary Capital projects initial demand for XRP ETFs could reach $5 billion, with JPMorgan analysts estimating nearly $8 billion annually. The SEC is scheduled to rule on six major spot XRP ETF applications between October 18 and October 25, 2025. Concurrently, Ripple’s application for a national bank charter is also expected to be decided in the same timeframe. Analysts suggest that combined approval of both ETFs and the bank charter would institutionalize XRP as both investable and operationally essential. Nevertheless, skepticism persists. BlackRock has explicitly declined to pursue a US spot XRP ETF, citing “limited client interest” and regulatory uncertainty. XRP’s price remains volatile, and while institutional wallets have accumulated significant amounts, regulatory delays or denials could still dampen confidence.
Background
Spot Bitcoin and Ether ETFs have successfully launched in the United States, attracting significant institutional and retail capital, offering investors exposure to cryptocurrencies without direct token ownership. XRP is the native digital asset of Ripple's payment network. In July 2023, a US court ruled that XRP itself is not a security when sold on secondary markets, which somewhat alleviated its regulatory uncertainty. Ripple's enterprise payment network, RippleNet, is already integrated with over 70 countries and more than 1,000 financial institutions worldwide.
In-Depth AI Insights
What are the deeper institutionalization motives behind the wave of XRP ETF filings and Ripple's bank charter application? - This dual initiative reflects a strategic escalation in crypto assets' pursuit of "mainstream financial legitimacy." ETFs serve as a gateway to institutional capital, while a bank charter provides Ripple with operational capabilities within the regulated financial system. This isn't just about XRP's status as an investment product, but its role as an "infrastructure" for global payments and liquidity. - This deeper integration aims to transform XRP from a speculative digital token into a financial instrument with bank-grade trust and use cases, appealing to traditional financial institutions constrained by regulatory and compliance requirements. How might the US SEC's October 2025 rulings impact the broader crypto market's regulatory trajectory and investor sentiment, especially under the Trump administration? - Under President Trump's second term, his administration generally favors deregulation and promoting business innovation. If the SEC approves XRP ETFs and Ripple's bank charter, it would signal a clear softening of US regulatory stance towards specific (non-PoW) digital assets and a willingness to provide clearer compliance pathways. - This decision could pave the way for ETF applications from other altcoins like Solana and reignite investor interest in non-Bitcoin/Ether crypto assets, while also pushing Congress towards more proactive digital asset legislation. Despite bullish sentiment, giants like BlackRock remain cautious. What are the overlooked systemic risks or long-term challenges for XRP, even with ETF approval? - BlackRock's "limited client interest" might suggest that, without the decentralized narrative and cultural recognition of Bitcoin and Ethereum, XRP's value proposition for some large institutional clients remains rooted in utility rather than a high-consensus as "digital gold" or "internet core infrastructure." - Long-term, the actual adoption rate and transaction volume of XRP as a payment tool must continue to grow to sustain its potentially elevated market valuation. If its network effects don't significantly expand, and it faces competition from CBDCs or other more efficient, low-cost payment solutions, its investment appeal could be limited.