The race for the first US-based XRP spot ETF is reaching a critical stage as 21Shares and Franklin Templeton submit crucial amendments to the SEC. This development sparks anticipation in the markets and signals a potential turning point for institutional adoption of XRP. Asset managers are strategically positioning themselves to attract initial investment flows.
The timing of these amendments is not coincidental. The U.S. regulatory landscape regarding XRP has undergone a radical transformation since the partial resolution of Ripple’s dispute with the SEC. Judge Analisa Torres ruled in July 2023 that XRP is not inherently a security, a decision that has paved the way for new investment products based on this asset.
This legal clarification has freed asset managers who were waiting for a clear signal before committing. The amendments submitted by 21Shares and Franklin Templeton likely include details about the asset custody structure, creation-redemption mechanisms, and market monitoring protocols. These technical elements are essential for obtaining the SEC’s green light, as the regulator examines each application with particular rigor.
The American regulator typically has a 240-day timeframe to approve or reject an ETF application, with several intermediate decision windows. The recent amendments suggest that issuers are actively responding to SEC feedback, a positive indicator in the approval process. Analysts estimate that the first XRP ETFs could launch by the second quarter of 2025.
The approval of spot XRP ETFs could radically transform the market structure of this asset. The experience with Bitcoin ETFs provides an instructive preview: these products have gathered more than $30 billion in assets under management in less than a year, generating significant structural demand.
For XRP, the stakes are similar but distinct. The asset already benefits from substantial liquidity on exchanges, with average daily volumes regularly exceeding one billion dollars. The introduction of spot ETFs could attract a new category of institutional investors currently limited by regulatory or operational constraints.
Traditional portfolio managers, pension funds, and family offices could gain exposure to XRP via an exchange-traded vehicle, benefiting from regulatory protection and familiar custody infrastructures. This increased accessibility should theoretically exert upward pressure on prices, although the volatility of the crypto market remains a factor of uncertainty. XRP’s current support around $2.20 could serve as a solid foundation if institutional developments continue to flow in.
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