The launch of spot Bitcoin ETFs in the United States earlier this year marked a turning point in the evolution of digital asset investment. Since their approval in January 2025, these financial products have attracted massive inflows, signaling strong institutional demand and accelerating the mainstream adoption of cryptocurrencies. While spot Bitcoin ETFs have dominated headlines, the momentum is now shifting toward broader market expansion—with Ethereum ETFs already approved and trading, and growing speculation about the next major digital asset to receive regulatory green light: XRP.
As the seventh-largest cryptocurrency by market capitalization—valued at approximately $30 billion—XRP has long been at the center of regulatory debate in the U.S. However, following a landmark legal victory for Ripple Labs against the U.S. Securities and Exchange Commission (SEC), sentiment around XRP’s future in regulated finance has shifted dramatically.
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A Legal Turning Point for XRP
For years, Ripple faced an intense legal battle with the SEC, which claimed that XRP was an unregistered security. The case cast uncertainty over XRP’s status and limited its availability on major U.S. exchanges. However, after Ripple spent an estimated $150 million in legal fees and fought through years of litigation, a federal judge ruled that XRP itself does not qualify as a security when sold to the general public.
This distinction was crucial. While the court acknowledged that certain institutional sales of XRP might constitute securities offerings, retail transactions were deemed outside the scope of securities law. This partial win laid the foundation for renewed confidence in XRP’s compliance potential and reignited discussions about its inclusion in regulated investment vehicles.
With this precedent set, industry leaders—including Ripple CEO Brad Garlinghouse—are now confidently predicting the arrival of a spot XRP ETF in the U.S. market.
“It’s Inevitable”: Ripple CEO Speaks Out
During an exclusive interview at Swell 2025 in Miami, Garlinghouse stated unequivocally that a spot XRP ETF is not just possible—it’s inevitable.
“For me, it’s a certainty. We can debate how fast it will happen. Obviously, there have already been two or three filings for an XRP ETF. When the Bitcoin ETF launched, I said it was inevitable. Now we’re seeing it unfold,” Garlinghouse told EXAME.
He pointed to growing investor demand and proactive moves by asset managers as key drivers. Notably, Grayscale Investments recently filed for a diversified digital asset ETF that includes XRP among its holdings—a move seen as a strategic step toward broader exposure for the asset within regulated frameworks.
Garlinghouse emphasized that where investor demand exists, financial innovation follows:
“Investors want access to this asset class. And when they do, you’ll see firms stepping in to provide it—because there’s money to be made. So yes, we will have an XRP ETF. The only question is when.”
That timeline, however, hinges largely on regulatory leadership. Garlinghouse referenced SEC Chair Gary Gensler’s tenure as a wildcard factor, noting his historically strict stance on crypto regulation.
Why an XRP ETF Matters
An exchange-traded fund (ETF) allows investors to gain exposure to an underlying asset without directly holding it. For retail and institutional investors alike, a spot XRP ETF would offer several advantages:
- Regulatory compliance and transparency
- Easier integration into traditional brokerage accounts
- Lower barriers to entry compared to direct crypto ownership
- Improved liquidity and price discovery
ETFs also serve as gateways for pension funds, endowments, and other conservative investors who require SEC-approved vehicles before allocating capital. With Bitcoin and Ethereum already having cleared this hurdle, pressure is mounting for regulators to treat other major digital assets like XRP with similar consistency.
Moreover, XRP’s unique utility in cross-border payments—facilitating fast, low-cost international transactions—adds fundamental value beyond speculative appeal. Ripple’s network is used by over 600 financial institutions globally, reinforcing XRP’s role as more than just a tradable token.
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Market Readiness and Investor Demand
Despite lagging behind Bitcoin and Ethereum in ETF adoption, other large-cap cryptocurrencies are gaining traction. Solana, currently the fifth-largest digital asset with nearly $78 billion in market value, recently saw Brazil launch its first Solana-based ETF—a sign of growing global appetite for diversified crypto exposure.
In the U.S., while no spot XRP ETF has yet been approved, multiple applications have been submitted. These filings reflect increasing confidence among asset managers that regulatory conditions are improving.
Additionally, data shows sustained retail interest in XRP. Google search trends, social media engagement, and trading volume spikes often correlate with legal developments—indicating that public sentiment remains highly responsive to progress toward formal recognition.
Frequently Asked Questions (FAQ)
Q: Is XRP considered a security in the U.S.?
A: Not categorically. A U.S. court ruled that XRP is not inherently a security when sold to retail investors. However, certain institutional sales may still fall under securities regulations.
Q: Has an XRP ETF been approved in the U.S.?
A: As of now, no spot XRP ETF has been approved by the SEC. However, several proposals have been filed, and industry leaders expect approval in the coming years.
Q: What impact would an XRP ETF have on its price?
A: Historically, ETF approvals have led to significant price increases due to heightened institutional demand and improved market liquidity. A similar effect could occur with XRP if an ETF is approved.
Q: How does XRP differ from Bitcoin and Ethereum?
A: While Bitcoin serves primarily as digital gold and Ethereum supports smart contracts, XRP is optimized for fast and low-cost international payments, making it attractive to banks and payment providers.
Q: Can U.S. investors currently buy XRP?
A: Yes. Following Ripple’s legal win, major platforms like Coinbase and Kraken have relisted XRP for trading in the U.S.
The Path Forward
The trajectory of crypto regulation in the U.S. continues to evolve—one decision at a time. With Bitcoin and Ethereum ETFs now established, the framework exists for expanding into other top-tier digital assets.
An XRP ETF wouldn’t just benefit Ripple or XRP holders; it would further validate the maturation of the entire crypto ecosystem. It represents another step toward bridging traditional finance with blockchain innovation.
As Garlinghouse put it: “It’s not if—it’s when.”
And when that day comes, investors across America may finally gain seamless, regulated access to one of the most widely used digital assets in global finance.
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