The prospect of a U.S.-approved spot XRP ETF in 2025 is capturing the attention of investors, institutions, and crypto enthusiasts alike. On Polymarket, a leading prediction market platform, the odds of approval have surged to 90%, up from just 70% a few weeks ago. This dramatic rise reflects growing confidence that XRP may soon join Bitcoin and Ethereum in gaining regulatory approval for a spot exchange-traded fund—marking a pivotal moment for the digital asset.
Why a Spot XRP ETF Could Be a Game-Changer
A spot XRP ETF would allow investors to gain exposure to the actual XRP token through traditional stock exchanges, bypassing the complexities of crypto wallets and exchanges. This streamlined access could significantly broaden XRP’s investor base, particularly among institutional players such as pension funds, hedge funds, and asset managers who prefer regulated financial instruments.
By listing on established markets like the NYSE or Nasdaq, a spot ETF would bring increased liquidity, price transparency, and regulatory oversight—key factors that often determine long-term asset adoption. The approval could also trigger a wave of capital inflows, especially if major financial institutions begin including XRP ETFs in their portfolios.
Polymarket’s prediction contract on the XRP ETF approval has already seen over $95,000 in trading volume, indicating strong market conviction. While not a guarantee of regulatory outcomes, Polymarket often mirrors shifts in sentiment driven by legal developments, insider signals, and broader macro trends in the crypto space.
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SEC Delays Decision: What It Means for XRP
Despite rising optimism, the U.S. Securities and Exchange Commission (SEC) has once again extended its timeline for a final ruling. The agency recently announced a 35-day delay in its decision on Franklin Templeton’s proposed spot XRP ETF. A similar postponement was issued for a spot Solana ETF application.
Instead of delivering a verdict, the SEC opened a public comment period, inviting feedback from stakeholders. This procedural move pushes any potential approval into the second half of 2025, prolonging uncertainty but also allowing more time for market education and regulatory scrutiny.
Historically, such delays don’t necessarily signal rejection—they often reflect the SEC’s cautious approach to novel financial products. However, with Bitcoin and Ethereum spot ETFs already approved, pressure is mounting on regulators to apply consistent standards across major digital assets.
Canada Leads the Way in XRP ETF Adoption
While the U.S. remains in deliberation mode, Canada has moved decisively forward. Regulators at the Ontario Securities Commission (OSC) have already approved spot XRP ETFs from major financial firms including Purpose Investments, 3iQ, and Evolve.
Purpose Investments made headlines by waiving management fees on its XRP ETF until February 2026, effectively offering investors zero-cost exposure during the early adoption phase. This bold strategy underscores Canada’s proactive stance in fostering crypto innovation within a regulated framework.
With over $8.3 million in assets under management, these Canadian ETFs are already providing real-world utility and investment access. The contrast with the U.S. regulatory environment is stark—where legal ambiguity continues to stall progress despite clear market demand.
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XRP Market Resilience Amid Volatility
Even without U.S. ETF approval, XRP has demonstrated remarkable price stability amid turbulent market conditions. Recently, the token experienced an extreme 8,466% spike in long-to-short liquidation imbalance over just 12 hours—indicating a surge in bullish leverage among traders.
Despite this imbalance, which led to over $508,000 in liquidated long positions**, XRP’s price barely flinched. It gained only **0.20%**, holding steady around **$2.15. This resilience suggests that while speculative trading activity may be high, underlying price mechanics remain stable—potentially due to strong foundational demand or institutional accumulation.
Such stability amid volatility strengthens the case for XRP as a mature digital asset capable of withstanding market stress—a trait that could further bolster its appeal to ETF issuers and regulators alike.
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- Canada XRP ETF
Frequently Asked Questions (FAQs)
How would a U.S. spot XRP ETF benefit XRP?
A U.S. spot XRP ETF would make the asset accessible to retail and institutional investors through traditional brokerage accounts, eliminating the need for crypto wallets or exchanges. This could drive massive inflows, increase liquidity, and enhance price discovery, accelerating mainstream adoption.
What impact could an XRP futures ETF have on financial markets?
While a futures-based ETF doesn’t hold actual XRP tokens, it still offers regulated exposure to XRP’s price movements. Approval could influence related financial instruments and boost investor confidence in digital assets, potentially benefiting crypto-linked stocks and investment products.
What are the primary use cases for XRP?
XRP is primarily used for fast, low-cost cross-border payments. Financial institutions leverage the XRP Ledger to enable real-time settlements and on-demand liquidity. Additionally, the network supports asset tokenization and decentralized finance (DeFi) applications.
Could Ripple’s ongoing legal case affect ETF approval?
Yes. The outcome of Ripple’s lawsuit with the SEC plays a crucial role. A favorable ruling—particularly one affirming that XRP is not a security—would remove a major regulatory hurdle and significantly increase the likelihood of ETF approval.
Is Canada’s approval of XRP ETFs influencing U.S. regulators?
While U.S. regulators operate independently, they often observe international precedents. Canada’s successful rollout of regulated XRP ETFs without major issues may serve as a model and add pressure on the SEC to act decisively.
What could happen to XRP’s price if an ETF is approved?
Analysts project significant upside. Short-term targets range from $2.70 to $3.30, with long-term forecasts reaching $8 to $19, depending on market cycle conditions and institutional inflows following approval.
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