XRP Could Be the Next Crypto to Get a Spot ETF Approval in the U.S.

XRP could become the next major cryptocurrency to receive a spot ETF approval in the U.S., thanks to its superior market liquidity and recent leveraged ETF launch

XRP could be the next major cryptocurrency to receive a spot ETF approval in the U.S., thanks to its superior market liquidity and recent leveraged ETF launch, according to analysts at Kaiko, a crypto research and data platform.

Among altcoins, XRP currently boasts the highest 1% market depth on major centralized exchanges — meaning there are significant buy and sell orders near the current price, which minimizes slippage and supports smoother, more efficient trading.

“A highly liquid spot market is important for creating efficient structured products, and the former SEC leadership was highly sensitive to this,” Kaiko’s analysts noted in their Monday report.

“This lack of market depth was often cited by the SEC in rejecting applications for U.S. cryptocurrency ETFs, as they argued that the small trading volumes and large price dislocations at the 1% depth made for an insufficiently liquid market.”

XRP’s liquidity surged notably toward the end of 2024, surpassing that of Solana (SOL) and doubling that of Cardano (ADA). The momentum was fueled by growing speculation that Donald Trump’s return to the presidency — coupled with pro-crypto sentiment — could fast-track the end of the SEC’s legal dispute with Ripple, which had long hindered the approval of an XRP spot ETF.

(Chart: Kaiko)

The altcoin is also leading the charge in active ETF filings. According to Kaiko data, the altcoin has 10 spot ETF applications pending, more than any other altcoin. Solana follows with five filings, while Litecoin (LTC) and Dogecoin (DOGE) each have three.

The wave of applications comes amid a shakeup in the SEC’s leadership. Industry-friendly Paul Atkins is expected to take over from Gary Gensler as SEC Chair after being confirmed by the Senate last week. His appointment is widely expected to usher in a more crypto-positive regulatory approach.

After months of anticipation, the U.S. Congress approved a measure to extend the government funding deadline until Nov. 17, averting a shutdown that had threatened to stall the confirmation of several key administration officials, including Atkins.

The move paves the way for a swifter approval of President Trump’s nominees, such as Paul Atkins, to take over as SEC Chair from Gary Gensler.

Atkins, a former commissioner at the Commodity Futures Trading Commission (CFTC), is known for his favorable stance on cryptocurrencies and decentralized finance (DeFi). During his time at the CFTC, Atkins was a vocal advocate for adapting U.S. futures regulations to accommodate the unique characteristics of crypto assets.

Atkins’s appointment to the SEC is expected to bring a more balanced and nuanced perspective to the commission’s approach toward crypto regulation. Unlike Gensler, who has been accused of harboring anti-crypto biases, Atkins is recognized for his understanding of blockchain technology and its potential to revolutionize financial services.

Moreover, the Trump administration has shown increasing support for cryptocurrencies. In July, Trump himself expressed hope that the SEC would quickly approve bitcoin (BTC) ETFs.

“I hope they approve it. I think it’s something that a lot of people want to see happen, and I think it would be a positive development for the cryptocurrency industry,” Trump said in an interview with FOX Business.

The former president’s remarks came shortly after the SEC announced a delay in its decision on applying for bitcoin ETFs, which were initially expected to be approved by July 11.

Trump’s administration has also taken steps to promote financial innovation and reduce regulatory burdens on U.S. businesses. In 2020, the administration issued an executive order on federal cryptocurrency regulation, directing agencies to coordinate their efforts and prioritize consumer protection and financial stability.

Levaraged XRP ETF Launches

Meanwhile, Teucrium launched its leveraged XRP ETF — XXRP — on Friday, marking another milestone for the altcoin. The ETF, which will use futures and swap contracts to aim for 2x the daily return of XRP, is the first XRP ETF to launch in the U.S.

However, the SEC has yet to greenlight a spot version.

“Despite the lack of a spot XRP ETF, the approval of Teucrium’s leveraged product is noteworthy as it showcases the SEC’s increasing openness toward new types of crypto ETFs,” Kaiko analysts said.

The approval of XXRP also comes amid a broader shift in regulatory sentiment toward cryptocurrencies, driven in part by the Trump administration’s focus on promoting economic growth and technological innovation.

“This changing tide could be crucial for the finalization of a spot XRP ETF application, setting the stage for the next chapter in the U.S. crypto derivatives market.”