JPMorgan has forecasted that a spot-based XRP exchange-traded fund (ETF) could potentially attract between $3 billion to $8 billion in investments. This estimate is based on the success of Bitcoin and Ethereum ETFs, which launched in 2023.
XRP ETF Could Follow Bitcoin and Ethereum’s Success
The forecast from JPMorgan draws on the performance of Bitcoin and Ethereum ETFs that launched around 1.5 years ago. Bitcoin ETFs currently account for about 8% of Bitcoin’s total market capitalization, which is currently valued at $1.81 trillion. In contrast, Ethereum ETFs have seen a lower market penetration, around 3%. JPMorgan suggests that Solana ETFs could see similar results to those of Bitcoin and Ethereum.
According to Ripple’s Monica Long, XRP might be the next major cryptocurrency to have an ETF after Bitcoin and Ethereum.
Good Days Seem To Be Coming For Ripple
On January 20, 2025, Donald Trump will take the oath of office as the President of the United States. His administration is expected to be more supportive of cryptocurrencies, which could be a positive sign for Ripple. Many believe that Trump’s pro-crypto stance will create a better regulatory environment for Ripple and other crypto companies.
The same day, Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission (SEC), will step down. Gensler has been known for his strict approach toward cryptocurrency regulations, which has been a challenge for Ripple in the past.
Paul Atkins will replace Gensler as the new SEC chair. Atkins is viewed as more favorable toward crypto innovation, and many expect that he could speed up approvals for crypto-related products, including the XRP ETF. This change in SEC leadership and U.S administration is expected to speed up the approval process for crypto-related products, including XRP ETFs.
Additionally, January 20 marks the last day for the SEC to appeal the court’s ruling in Ripple’s case. This deadline is seen as a turning point. If the SEC does not appeal, it could lead to more legal clarity for Ripple,
Companies Are Already In Queue for XRP ETF
Several companies have already filed for an XRP ETF, including Bitwise, WisdomTree, Canary Capital, and 21Shares. These firms are seeking approval from the SEC to offer investors exposure to XRP without directly owning the cryptocurrency. The growing demand for an XRP ETF is fueled by the market’s desire for regulated, easily accessible investment options in the cryptocurrency space.
Nate Geraci, an ETF analyst, emphasized that the approval of an XRP ETF is not a matter of feasibility but rather timing. He believes political and regulatory shifts, especially the change in SEC leadership, could help XRP ETFs to gain approval. Ripple CEO Brad Garlinghouse has also expressed confidence that an XRP ETF will eventually be approved in the U.S.
