XRP ETF Seen As Most Likely To Receive SEC Approval First Beating DOGE and Solana
As the race for crypto ETF approvals heats up, XRP is emerging as the front-runner among altcoins, according to a new report from market intelligence firm Kaiko. The company believes that a spot XRP exchange-traded fund (ETF) has the strongest chance of securing SEC approval ahead of other proposed altcoin ETFs like Solana, Litecoin, and Cardano.
Why XRP Leads the Pack
Kaiko attributes XRP’s favorable position to its high liquidity and strong trading volume, especially on U.S.-based exchanges. XRP recently hit its highest spot trading volume in the U.S. since the 2020 delistings sparked by an SEC lawsuit against Ripple Labs. The token currently ranks as the fourth-largest cryptocurrency by market capitalization.
Another key advantage for XRP is the regulatory precedent already in place. Earlier this month, Teucrium Investment Advisors launched a 2x leveraged XRP ETF, a move that strengthens the case for a more traditional, less risky spot XRP ETF.
“It’s tough to justify denying a simple spot product when a high-risk, leveraged ETF is already trading,” said Adam Morgan of Kaiko.
Investors Flock to XRP Amid Crypto Outflows
According to data from CoinShares, investors have recently pulled a staggering $7.2 billion from digital asset funds, with Bitcoin and Ethereum ETFs seeing the largest outflows. Despite this trend, XRP appears to be a bright spot, attracting attention as one of the few digital assets showing resilience in a challenging market.
Over the past week, XRP’s price surged more than 15%, reaching approximately $2.12—a strong recovery, though still below its all-time high of $3.40 set in 2018, per CoinGecko. The token came close to that level again in early January, signaling growing investor confidence.
Legal Clarity Boosts XRP’s Prospects
XRP’s rise is partly fueled by Ripple’s partial legal victory in its battle with the SEC. In 2023, a federal judge ruled that programmatic sales of XRP to retail investors via exchanges do not constitute securities offerings, though institutional sales were still deemed to violate securities laws. Ripple later agreed to pay a $50 million fine to settle remaining issues with the SEC, bringing a sense of closure and added clarity to the asset’s legal standing.
This clarity has sparked renewed interest from ETF issuers. Firms like Bitwise, Grayscale, 21Shares, CoinShares, and Canary Capital have all filed applications to list spot XRP ETFs, a sign that the crypto industry is pushing hard for broader investor access to digital assets via traditional financial instruments.
What’s Next for Altcoin ETFs?
While XRP remains the frontrunner, Kaiko noted that a Solana ETF may also be next in line if the SEC continues its gradual acceptance of altcoin-related products. However, the success of Bitcoin ETFs, which have brought in over $39 billion in net inflows, according to Farside Investors, is setting the tone for what investors want next: regulated, easily accessible exposure to promising crypto assets.
Although Ethereum ETFs were approved shortly after the Bitcoin products, they’ve seen slower adoption, suggesting that investor interest may now be shifting toward next-generation altcoins, and XRP is clearly leading that charge.
