This Year Will See an XRP Exchange Traded Fund (ETF) – Polymarket and JPMorgan Agree

Major corporations and average investors alike seem to be in agreement on one thing – we will see an XRP Exchange Traded Fund (ETF) this year. On Polymarket, odds of an XRP ETF in 2025 currently sit at 71%, and even JPMorgan is warming up to the idea.

But what exactly is an ETF, and why does it matter in the world of crypto? Let’s take a closer look.

What Is an ETF?

An ETF, or Exchange Traded Fund, is a financial product that tracks the performance of a specific cryptocurrency (or a basket of cryptocurrencies), allowing investors to gain exposure to the market without directly owning the digital assets. These products are offered on traditional stock exchanges.

Since ETFs provide a regulated, simple way for institutions to gain exposure, they’re often seen as the best way to bring “big money” into the crypto industry, especially when compared to Grayscale’s trusts.

Currently, both Bitcoin and Ether have associated ETFs, with the iShares Bitcoin Trust (IBIT), launched in January last year, being particularly successful. This ETF amassed more than $52 billion in assets under management (AUM).

Grayscale’s Ethereum Trust ETF (ETHE), on the other hand, manages roughly $4.6 billion in assets. Both of these ETFs began trading on the New York Stock Exchange Arca.

Expanding the List of ETFs

The success of these ETFs has not only lured institutional investors, but also motivated asset managers to seek the introduction of ETFs for smaller tokens, such as Solana, and even Ripple’s XRP.

On Polymarket, a decentralized prediction platform where users trade on real-world event outcomes, the odds of an XRP ETF this year are at 71%, suggesting that the majority of the industry expects it this year. Aside from a few outlier moments, odds have mostly hovered between 69% and 72%.

At the same time, banking giant JPMorgan recently said that ETFs for Solana and XRP could attract up to $14 billion in new funds. For XRP specifically, an ETF could draw in between $4 billion and $8 billion.

Other high-profile individuals in the banking industry seem to be echoing this idea as well, as Matthew Sigel, head of digital assets research at VanEck, shared JPMorgan’s comments on X, suggesting a positive outcome.

Paving the Way for More Crypto ETFs

The state of Wisconsin is also playing a role in paving the way for more crypto ETFs, with the State of Wisconsin Investment Board having already included the Bitcoin ETF in its portfolio. Now, the pension fund is reportedly considering adding Solana and XRP ETFs once they become available.

The Michigan Department of Treasury also recently included the Bitcoin ETF in its portfolio, further legitimizing the product in the eyes of pension funds and other institutional investors.

With the incoming U.S. administration having a pro-crypto stance, we could see regulations being shaped in a way that makes it easier for new cryptocurrency ETFs to get approved.