An XRP-based Exchange-Traded Fund (ETF) is creating a lot of attention in the crypto scene. Though continuous legal skirmishes with the U.S. Securities and Exchange Commission (SEC), XRP’s creator Ripple Labs has shown great hope regarding the inevitable approval of an XRP ETF.
This hope has created expectation in the market, particularly as Bitcoin (BTC) declines below $80,000, so underlining the developing dynamics of institutional investment in the cryptocurrency industry.
XRP ETF Approval Inevitable
Ripple Labs CEO Brad Garlinghouse has underlined time and again how certain approval of a spot XRP ETF in the United States is inevitable. The success of Bitcoin ETFs—which have garnered billions of dollars in investment overall since their January 2025 approval—helps him to be confident. Garlinghouse thinks that despite the SEC’s continuous lawsuit against Ripple over the classification of XRP as a security, the growing demand for cryptocurrency-based investment vehicles—especially in controlled forms like ETFs—will drive the agency to finally approve an XRP ETF.
An XRP ETF is not fresh concept. For some years, institutional investors and bitcoin aficionados have debated it. Nonetheless, the legal posture of the SEC on XRP has remained a barrier since the government agency has not yet given a definitive response on XRP classification. Notwithstanding this, Garlinghouse’s claim that an XRP ETF is “inevitable” suggests the larger market momentum driving acceptance of such products.
Cryptocurrency ETF Growth
The market for cryptocurrencies ETFs has been seeing fast expansion. For instance, Bitcoin ETFs have become rather popular and draw about $17 billion in assets since their introduction earlier this year. The taste for ETFs connected to Cryptocurrency Market goes beyond only Bitcoin. Recently declaring for XRP ETFs, companies including Bitwise and Canary Capital Group indicate that institutional interest in cryptocurrencies is at an all-time high.
Emphasizing that the introduction of an XRP ETF will address a major need for regulated and widely available cryptocurrency products, Garlinghouse’s remarks fit this increasing trend. Seeking exposure to the digital asset class without the complexity of physically buying and storing bitcoins, many individual and institutional investors are For many, ETFs provide a safer and more familiar way to expose to XRP’s price swings free from the related hazards of wallet maintenance and direct asset ownership.
XRP Legal Struggles
There are still major obstacles even with the hope expressed by Ripple and other business leaders. The continuous lawsuit the SEC files against Ripple Labs mostly revolves on XRP classification. XRP is, according to the SEC, a security and so subject to agency rigorous rules. Conversely, Ripple argues that XRP is a utility token—that of Bitcoin or Ethereum—and ought not to be categorized as a security.
Many market players are unsure about the quiet the SEC has shown on the possible approval of new cryptocurrencies ETFs like XRP. While the SEC has approved Bitcoin ETFs, the legal environment for cryptocurrencies like XRP is yet unknown. The legal fight of Ripple still looms big, and the result of the litigation can have major effects on the global cryptocurrency market.
Moreover, the ability of Ripple to create an ETF will mostly rely on the SEC’s opinion on whether the digital asset qualifies as security. Companies like BlackRock, among the biggest worldwide financial organizations, are reluctant to proceed with XRP ETFs until the SEC offers more information. Notwithstanding this, Ripple’s aggressive approach and conviction that an XRP ETF will eventually be approved have caused a lot of conjecture that such a product is not too far off.
Bitcoin Price Volatility
Bitcoin has also undergone notable volatility concurrently; its price recently dropped below the $80,000 level. Bitcoin’s price as of April 7, 2025, dropped significantly from past highs at about $78,000. The main causes of this recession are more general economic ones, including the trade conflicts started by President Donald Trump’s new tariffs and the continuous disturbance of the market brought about by American legislative changes.
The price fluctuations of Bitcoin mirror the larger difficulties the usually erratic cryptocurrency market faces. For traders of Bitcoin, the $73,745 support level is absolutely vital. Experts warn that if Bitcoin falls below this level it could slip further more into the $55,000–$57,000 region. This possible drop reminds us of the erratic character of crypto assets even as they are becoming more and more popular among institutional investors.
Bitcoin and XRP Futures
Notwithstanding these difficulties, Bitcoin and XRP Price especially seem to have bright futures. Given President Trump’s attitude on cryptocurrencies, many observers think a more favorable legislative environment is only around. His government is said to be more flexible with digital assets, which would help the SEC’s attitude to cryptocurrencies in next years.
For XRP ETFs, the immediate future is still unknown, though. Although Ripple Labs is sure that an XRP ETF will eventually be approved, the regulatory issues confronting the bitcoin market and the silence of the SEC raise numerous unresolved concerns. The market will keep a close eye on the SEC right now and evaluate how its choices on Bitcoin ETFs will affect the approval of altcoins-based ETFs.
Final thoughts
Ripple Labs is still hopeful about final approval, hence there is obvious expectation regarding the possible release of an XRP ETF. Although legal obstacles still exist, the increasing demand for bitcoin ETFs from both institutional and retail investors makes a strong case for the SEC to change its posture.
Simultaneously, Bitcoin’s battle to remain above $80,000 emphasizes the market’s volatility and still existing hazards. All eyes are on how the regulatory environment will change and determine the future of bitcoin investments while the SEC keeps mute on the matter.
