Interest in XRP exchange traded funds (ETFs) has surged recently following the approval of a new product by Cboe. The 21Shares XRP ETF, which will be traded under the XR ticker symbol, expands the growing list of funds designed to provide exposure to the XRP token. The speed at which capital is flowing into these funds has taken many in the industry by surprise. Ripple CEO Brad Garlinghouse highlighted that XRP ETFs amassed over $1 billion in assets within a mere 17 days—a much quicker start than expected.
Market analysts have begun to predict a significant escalation in this trend. Crypto analyst Mickle stated that if inflow rates maintain their current trajectory, XRP ETFs could potentially hold as much as $10 billion worth of XRP within the next year. He emphasized that ETFs facilitate access for investors who might have hesitated due to complexities associated with crypto exchanges. Many potential investors had previously avoided buying XRP because of these hurdles, as well as compliance issues. The introduction of ETFs provides a straightforward way for individuals to invest in XRP through traditional brokerage accounts.
Mickle also noted that the current iteration of XRP differs markedly from the XRP that early investors acquired years ago. He remarked, “The network keeps getting more powerful. New features are being added, and from an investment perspective, that matters.” He encouraged investors to consider Ripple’s original vision for the XRP Ledger, citing past interviews with co-founder Chris Larsen, who has long advocated for the issuance of assets on the ledger and the use of XRP as a liquidity mechanism.
He described the emerging XRP ETFs as a new liquidity pipeline, suggesting they represent a long-term investment rather than a transient trading opportunity. This increasing institutional demand could diminish the current reliance on retail trading cycles, thereby adding depth to the XRP market. Over time, such demand may contribute to price stability and enhanced trading volumes. Mickle projected that as these markets evolve, the role of the XRP Ledger would likely expand to include more extensive infrastructure development. “You’re going to see more infrastructure move onto the XRP Ledger,” he noted, positioning XRP as a key liquidity provider for diverse financial applications.
Institutions are driven to promote ETF products as they align well with compliance, marketing, and advisory frameworks, making XRP ETFs easier to recommend and distribute compared to direct cryptocurrency holdings. This development is seen as a major positive catalyst for long-term adoption.
The market cycles are also undergoing transformation. Recent price fluctuations following U.S. interest rate cuts reveal that cryptocurrencies continue to respond to macroeconomic news. However, analysts argue that the market is slowly shifting away from strict four-year boom-and-bust cycles. Instead, performance appears to be increasingly influenced by fundamental factors such as regulatory developments, infrastructural advancements, and institutional use cases. Notably, XRP has outperformed many altcoins in the last 18 months, which suggests that capital allocation is becoming more selective.
