The Rise of Interest in XRP ETFs Is Emblematic of a Shift in the Regulatory Landscape to a More Friendly Environment

The recent swarm of ETF applications is emblematic of a shift in the regulatory landscape to a more friendly environment.

The Securities and Exchange Commission (SEC) has received at least six applications for XRP exchange-traded funds (ETFs) from major issuers such as Canary Capital, Grayscale, Bitwise, WisdomTree, 21Shares, and Coinshares.

The latest application, filed by Grayscale, triggered a 21-day comment period on Friday, inviting members of the public to submit their feedback on the proposed ETF.

Meanwhile, five Solana ETF applications from 21Shares, Bitwise, Grayscale, VanEck, and Canary are still awaiting a decision.

The increasing interest in ETFs can be attributed to a shift in the regulatory landscape towards a more favorable stance on digital assets. This shift began towards the end of Gary Gensler’s tenure with the approval of the Bitcoin and Ethereum ETFs.

Now that Mark Uyeda, an official known for his support of crypto, has taken office and is working alongside the most pro-crypto Congress the U.S. has seen, the regulatory landscape is expected to be friendlier.

Additionally, Ripple Labs' legal victory against Gensler's SEC has also placed it in a favorable position for growth.

In other news, President Trump signed an executive order to create a sovereign wealth fund that will include cryptocurrencies. While Bitcoin is largely expected to be on the list, recent developments may also lead to XRP being included in the fund.

In January, Trump met with Brad Garlinghouse, CEO of Ripple, who is pushing for the sovereign wealth fund to include multiple cryptocurrencies, specifically XRP.

“I own…

— Brad Garlinghouse (@bgarlinghouse) January 27, 2025

An XRP ETF approval could bolster the crypto's chances of being included in the reserve.

Ripple is the third-largest crypto by market cap and trades at $2.48 at the time of writing.