New Spot XRP Exchange-Traded Funds Could Draw $800M in Their First Week

Those are some of the predictions made by crypto-market watchers like JPMorgan gauging the XRP exchange-traded fund applications that have flooded the Securities and Exchange Commission

The U.S. Securities and Exchange Commission has acknowledged several applications for exchange-traded funds tracking XRP from asset managers like Bitwise, 21Shares, and Grayscale.

The U.S. Securities and Exchange Commission has acknowledged several applications for exchange-traded funds tracking XRP from asset managers like Bitwise, 21Shares, and Grayscale.

The regulator’s recognition comes after a period of rejecting new crypto ETF applications and signals that things may be changing.

Previously, the SEC used its authority to quickly shut down any applications for spot Bitcoin and Ethereum ETFs, and told applicants to withdraw them almost as soon as they filed them.

But the agency has until mid-October to make its final decision on these applications.

Here’s what experts from JPMorgan, Bitwise, and others say to expect.

If new XRP ETFs manage to lure over $85 million in their first week, that would be “a relative success,” Bloomberg Intelligence ETF Analyst James Seyffart said.

The spot market for XRP is about 7.5% the size of Bitcoin, Seyffart said.

“If the XRP ETF’s are able to see volume in flows that are near or around 7.5% or more of the Bitcoin ETFs’ launch numbers, I would consider them to be a relative success,” he said. “Bitcoin ETFs saw about $14 billion in trading volume and $1.13 billion in flows.”

Donald Trump has pledged to relax crypto laws and to stop the government’s crackdown on digital assets.

Donald Trump has pledged to relax crypto laws and to stop the government’s crackdown on digital assets.

Since Trump’s inauguration, that has translated to him issuing executive orders, making pro-crypto appointments, and the SEC halting some of its cases against industry players.

If that translates to the markets watchdog dropping its long-running case against Ripple, then that will be another bullish sign for crypto, Seyffart said.

“The positive momentum in lawsuits with Coinbase and Robinhood are probably a good sign there will be some sort of solution in the coming months,” said Seyffart.

Matt Hougan, chief investment officer at asset manager Bitwise, is bullish on the prospects of XRP ETFs getting the nod from the SEC.

Speaking to CNBC, Hougan steered clear of discussing Bitwise’s application directly, but maintained that “there’s substantial demand for an XRP ETF.”

Without referencing specific numbers, Hougan highlighted the strong community of Ripple and XRP, and the lighter-touch approach to crypto that Washington DC has taken in the wake of Trump’s re-election.

In January, JPMorgan’s analysts predicted that up to $8 billion will flow towards XRP ETFs during their first year.

However, they remained bearish on altcoin ETFs in general.

“We don’t see investor interest or demand great enough to make these future altcoin ETP launches meaningful for the cryptocurrency ecosystem,” JPMorgan analysts said.

Luca Sorlini, head of products at virtual asset service provider Northstake, expected new XRP ETFs to attract between $400 million and $800 million in their first week of trading.

Luca Sorlini, head of products at virtual asset service provider Northstake, expected new XRP ETFs to attract between $400 million and $800 million in their first week of trading.

He extrapolated those figures from looking at the flows seen in spot Bitcoin and Ethereum ETFs.

Although, Sorlini did caveat that those figures would rely on how interested institutions are in the new funds, how many funds there are, and what the overall market conditions at launch are.

If an XRP ETF is approved, market analysts expect the crypto’s price to surge.

“This is likely to result in a surge in price if prior examples of Bitcoin and Ethereum ETF approvals are to be taken into account,” said Jacob Joseph, senior research analyst at crypto data provider CCData.

Bitcoin soared 150% over the course of last year after the SEC approved Bitcoin ETFs in January 2024.