Explosive XRP ETF Race: 9 Funds Eagerly Awaiting SEC Approval

The cryptocurrency world is buzzing with anticipation, and for XRP enthusiasts, the excitement is reaching fever pitch. A new frontier is opening up as the race for a spot XRP ETF in the United States intensifies. Franklin Templeton, a major American asset manager, has thrown its hat into the ring, becoming the ninth firm to formally apply for the coveted regulatory green light. This move underscores the growing institutional interest in XRP and the broader crypto market, even as giants like BlackRock remain on the sidelines – for now.

Who are the Frontrunners in the XRP ETF Race?

As of March 12th, a total of nine companies have officially submitted filings to the SEC, hoping to launch crypto ETF products centered around XRP. This impressive lineup includes a mix of established ETF issuers and crypto-native firms, signaling a diverse range of players betting on the future of XRP ETFs. Let’s take a closer look at who’s in the running:

• Bitwise: Leading the charge, Bitwise, a prominent crypto fund manager, was the first to file for an XRP ETF back on October 2, 2024. This early move positioned them as a pioneer in this emerging market segment.
• Canary Capital: Quickly following Bitwise’s lead, Canary Capital submitted their Form S-1 for a similar crypto investment product just days later, on October 8, 2024.
• 21Shares: Bringing international expertise to the table, Switzerland-based 21Shares, known for its crypto investment products in Europe, joined the race in November 2024.
• WisdomTree: Another established US ETF provider, WisdomTree, filed its application in December 2024, further solidifying the growing momentum behind XRP ETFs.
• ProShares: Making a significant entry in January 2025, ProShares didn’t just file for one, but several XRP ETF products, including the ProShares XRP ETF and three additional related investment vehicles.
• CoinShares: European crypto investment firm CoinShares also joined the fray in January, expanding the international representation in the XRP ETF competition.
• Grayscale: A major player in the crypto trust space, Grayscale proposed converting its existing XRP Trust into a spot ETF in late January, aiming to list it on the New York Stock Exchange. However, the SEC recently postponed its decision on Grayscale’s proposal.
• Volatility Shares: This Florida-based financial services firm made a bold move in early March, filing for not one, not two, but three distinct XRP ETF products, including leveraged and inverse XRP ETFs, showcasing innovative approaches to XRP investment.
• Franklin Templeton: The latest entrant, Franklin Templeton, filed on March 11th, solidifying the strong institutional interest in offering an XRP-based ETF to investors. Their ETF aims to track the XRP price and proposes using Coinbase Custody Trust for holding XRP.

Why the Rush for XRP ETFs?

The surge in XRP ETF filings reflects a growing belief in the maturation of the cryptocurrency market and increasing investor demand for regulated and accessible crypto investment products. An ETF structure offers several advantages, including:

• Accessibility: ETFs are traded on traditional stock exchanges, making them easily accessible to a wider range of investors, including those who may be hesitant to navigate the complexities of cryptocurrency exchanges.
• Regulation and Security: ETFs operate within a regulated framework, providing investors with a degree of security and oversight that may be lacking in direct crypto ownership. Custodial solutions like Coinbase Custody Trust further enhance security.
• Diversification: While a dedicated XRP ETF focuses on a single asset, it can still contribute to portfolio diversification within the crypto space and potentially broader investment strategies.
• Simplified Investment: ETFs remove the need for investors to manage private keys, wallets, or directly interact with blockchain technology, simplifying the investment process significantly.

The SEC’s Stance: Will Approval be Granted?

The crucial question looming over the XRP ETF frenzy is the SEC’s stance. While the agency has recently approved spot Bitcoin ETFs, the path for XRP ETFs remains uncertain. The SEC’s decision-making process is influenced by factors such as market surveillance, investor protection, and the regulatory clarity surrounding XRP itself, particularly in light of the ongoing legal battles and classification debates. The recent postponement of decisions on several crypto ETF filings, including Grayscale’s XRP Trust conversion, suggests the SEC is proceeding cautiously and deliberately.

Beyond Dedicated XRP ETFs: Broader Crypto Investment Vehicles

Interestingly, the crypto investment landscape is evolving beyond single-asset ETFs. Some asset managers are exploring broader “ETF Opportunities Trusts” that include XRP alongside other cryptocurrencies. REX-Osprey and Tuttle Capital Management have both filed for such trusts, incorporating XRP with assets ranging from Bitcoin to memecoins. This trend indicates a move towards more diversified crypto investment products, potentially catering to different risk appetites and investment strategies.

Who is Missing from the XRP ETF Party?

Despite the impressive list of filers, some notable names in the ETF and crypto space are still absent from the XRP ETF race. BlackRock, the world’s largest asset manager and a key player in the spot Bitcoin ETF approval, has yet to file for an XRP-based product. Other prominent firms like Invesco, VanEck, ARK Invest, Fidelity Investments, and Galaxy Digital are also currently not in the XRP ETF filing lineup. Whether they will join later remains to be seen, but their absence highlights the ongoing uncertainties and strategic considerations surrounding XRP ETFs.

Looking Ahead: The Future of XRP ETFs

The race for SEC approval of an XRP ETF is undoubtedly a significant development for the cryptocurrency market. The growing number of filings, including major players like Franklin Templeton, underscores the increasing institutional acceptance of XRP and the demand for regulated crypto investment products. While the SEC’s final decision remains pending, the momentum is building, and the potential launch of an XRP ETF could mark a pivotal moment for XRP adoption and accessibility, potentially influencing the future trajectory of the XRP price and the broader crypto market. Investors and market observers are keenly watching the SEC’s next moves, as they will likely set the stage for the next chapter in the exciting evolution of crypto ETFs.