In 2024, the cryptocurrency market experienced significant developments, particularly for Bitcoin and Ethereum. Both received approvals for Exchange-Traded Funds (ETFs) from the U.S. Securities and Exchange Commission (SEC), which allowed institutional investors to enter the market. These approvals contributed to a significant 98.13% growth in the overall cryptocurrency market cap in 2024.
Looking ahead to 2025, industry experts predict a high likelihood of XRP Spot ETFs receiving approval. According to Polymarket data, there is an 82% probability that U.S. regulators will approve an XRP ETF. Furthermore, Canadian securities regulators are currently reviewing Purpose Investments’ preliminary prospectus for the global launch of an XRP ETF.
This optimism is based on anticipated regulatory changes and a potentially more crypto-friendly administration under President Donald Trump. Institutional investors are keen to launch XRP Spot ETFs, and the SEC is currently reviewing multiple applications, which is a departure from the previous administration under SEC chair Gary Gensler, where these applications were overlooked.
Various asset management firms, including 21Shares, Bitwise, WisdomTree, and Canary Capital, have submitted applications to the SEC. The latest and largest contender is Grayscale, which aims to convert its XRP Trust into an ETF. This aligns with Grayscale’s successful launches of Bitcoin and Ethereum ETFs in the past.
The future of XRP looks promising. Ryan Rasmussen, the Head of Research at Bitwise Invest, stated in a post that leading institutional investors are closely monitoring XRP’s development. Rasmussen also praised XRP for its strong brand recognition, noting its resilience throughout multiple boom-and-bust cycles over the past decade.
XRP has strategically positioned itself as a bridge currency, appealing to institutional investors by facilitating faster and more cost-effective international payments. Additionally, its RLUSD stablecoin offers significant benefits to users and developers, driving trading volume and enhancing accessibility within the XRPL ecosystem.
However, Rasmussen expressed some uncertainty about the adoption of these products by wealth management firms in 2025, especially considering that many have yet to incorporate Bitcoin ETFs into their portfolios.
The SEC has officially launched a new Crypto Task Force led by Commissioner Hester Peirce. One of the main objectives of this task force is to determine the security status of various digital assets, an ongoing debate in the industry. Additionally, reports suggest that the SEC has removed information about the lawsuit against Ripple Labs from its website, indicating potential regulatory changes.
Despite the optimism, XRP has experienced short-term fluctuations. In the past 24 hours, XRP has declined by 5.44%, currently trading at $2.55. However, with ongoing regulatory developments and institutional interest, the future of XRP remains promising.