What is XRP ETF? When will the XRP ETF be approved?
Cryptocurrency Exchange
The year 2025 marked a historic turning point in the cryptocurrency market in terms of regulation and institutional interest. In particular, the U.S. Securities and Exchange Commission's (SEC) decisions regarding XRP ETF applications became the focus of both investors and market analysts.
So what exactly is an XRP ETF, and when was the approval process completed? In this article, we take a step-by-step look at how XRP ETFs work, the approval timeline, and their impact on the markets.
What is an XRP ETF?
XRP ETFs are exchange-traded funds that offer investors the opportunity to access
XRP price movements through traditional brokerage firms without directly participating in the cryptocurrency market. These funds track the price performance of digital assets, allowing investors to invest in XRP indirectly.
How Does an XRP ETF Work?
An institution wishing to issue an XRP ETF, such as Franklin Templeton, applies to an exchange like Cboe BZX for a rule change. After the SEC approves the application, market makers transfer a certain amount of XRP to the custodian in exchange for “creation units.” These units are then converted into ETF shares and offered to investors. If the price of these shares falls below the net asset value, an arbitrage mechanism kicks in; investors redeem their shares for XRP, restoring price equilibrium.
To minimize manipulation risks, the fund relies on a reference index based on price data from multiple exchanges with high trading volumes and publishes daily reports showing asset allocation. While independent audit firms verify the fund's wallet balances, the custodian uses multi-signature verification, cold storage systems located in different regions, and insurance coverage to enhance security. Management fees are expected to be at a level between the rates seen in
Bitcoin ETFs (below 20 basis points) and the higher costs associated with less liquid assets.
When Will XRP ETFs Be Approved?
The launch of XRP ETFs was met with intense institutional interest, and the approval process moved quite quickly. The first approval, which came on September 18, 2025, was a turning point for the market. This development paved the way for other pending applications. After a quiet October, a wave of approvals occurred in November 2025. On November 13, a major fund provider's ETF began trading on Nasdaq. With new approvals following shortly thereafter, the process was officially completed in early December 2025 with another fund entering the market, securing XRP ETFs a permanent place in global markets.
What Are the Reasons Behind the Growing Interest in XRP ETFs?
Interest in XRP ETFs has been growing significantly in recent times. The most important reason for this is that these funds offer investors a safer and more accessible entry point into the cryptocurrency market. Through
ETFs, investors can benefit from XRP's price movements without opening a digital wallet or trading directly on crypto exchanges.
Additionally, reduced regulatory uncertainty and the SEC's approval of certain funds have strengthened market confidence. Ripple's active use of XRP in cross-border payment solutions has highlighted the asset's real-world use cases, further boosting interest.
XRP ETF Advantages
For investors in the traditional financial world, XRP ETFs are an innovative tool that greatly simplifies access to crypto assets. One of the biggest advantages is that it eliminates the need for custody and wallet management. This allows investors to invest in
XRP price movements without having to deal with technical details such as private keys, recovery phrases, or hardware wallets.
Furthermore, these funds stand out in terms of reliability as they are officially approved financial products. ETF shares are traded on regulated exchanges; brokerage firms, custodians, and fund managers are also subject to existing capital market regulations. This structure ensures that investors trade under legal protection.
Another important advantage is portfolio integration. XRP ETF shares can be held in the same account as other investment instruments such as stocks or bonds. This makes risk management, reporting, and tax planning processes simpler and more comprehensive.
XRP ETFs vs. Bitcoin and Ethereum ETFs
|
XRP ETFs
|
Bitcoin and Ethereum ETFs
|
|
A token focused on cross-border payments operating on the Ripple network
|
The two most established digital assets in the crypto market
|
|
Gain access to XRP, used in Ripple's payment infrastructure, through a regulated investment vehicle
|
Enabling easy access to digital assets for institutional and individual investors
|
|
Approved in the last quarter of 2025, the regulatory process is newer and still developing
|
SEC-approved spot ETFs (Bitcoin) as of 2024 and Ethereum ETFs approved in mid-2025
|
|
The liquidity process is in its early stages as it has just been approved.
|
Mature products in terms of market value and trading volume
|
|
Spot ETF (trading on reserved XRP)
|
Spot ETF (with physical underlying assets)
|
|
Risk factors: Liquidity, market volatility, uncertainties surrounding the new ETF structure
|
Risk factors: Volatility, market manipulation, regulatory changes
|
|
Risk factors: Volatility, market manipulation, regulatory changes
|
Advantages: Wide market access, high liquidity, strong brand trust
|
The Impact of XRP ETF Approval on the XRP Price
It is impossible to completely disregard the impact of XRP ETFs on the price. This is because every new investment directed towards ETFs indirectly affects the supply of XRP in the market. When money flows into funds, a certain amount of XRP is purchased and reserved by custodians in exchange for this amount. This reduces the amount of XRP in circulation, which generally creates upward pressure on the price.
Conversely, when money flows out of ETFs, funds may have to sell the XRP they hold in their portfolios back to the spot market. If these sales occur at high volumes and there are insufficient buyers in the market, a downward effect on the XRP price may be observed. Therefore, XRP ETF approvals can be considered an important macro factor that can influence the price direction through elements such as investment flows, supply-demand balance, and market psychology.
XRP ETF Risks
As with any investment vehicle, XRP ETFs carry certain risks and limitations. The primary risk is
market volatility. Sudden changes in the price of XRP are directly reflected in the ETF price. Therefore, investors may see significant movements in the fund's value in a short period.
Another risk factor is fund management costs. XRP ETFs incur additional expenses such as custody, management, and rebalancing fees. These costs may prevent the fund from perfectly tracking the XRP price.
On the other hand, risks related to investor behavior should also be considered. Since the ETF format simplifies the investment process, some investors may not monitor price changes closely enough. However, it should be noted that XRP ETF prices largely track XRP's market performance and carry a similar level of market risk.
2025-12-15Legal Notice
The information, comments, and evaluations contained in this content do not constitute investment advice. This content is not intended to be prescriptive in any way and is intended to provide general information. It does not constitute investment advice. CoinTR cannot be held responsible for any transactions made based on this information or any losses that may arise.
What is Solana ETF? How does it work? Recommended
Cryptocurrency ExchangeWhat is a Stablecoin? 2025 Stablecoin List The cryptocurrency market is known for its high volatility, posing significant risks for investors. Stablecoins provide a secure alternative by maintaining a stable value. Typically pegged to fiat currencies, precious metals, or other assets, stablecoins serve as a safe haven for investors and traders. But what is a stablecoin, how does it work, and what types exist? Let’s dive into the details. What is a Stablecoin? A stablecoin is a type of cryptocurrency designed to maintain a stable value,2024-11-24
Cryptocurrency ExchangeWhat are Bear and Bull Markets? In financial markets, the terms bear market and bull market are often used to describe overall trends. A bear market represents periods of declining prices, while a bull market refers to rising trends. These terms are particularly important in the cryptocurrency market. But what exactly is a bear market, what is a bull market, and how long do these periods last? Here’s a detailed guide. What is a Bear Market? A bear market is a period when asset prices experience a prolonged decline, typically2024-11-24
Cryptocurrency ExchangeWhat is Blockchain Technology? Blockchain is a digital ledger technology where data is stored on a distributed network without the need for central authority. As the backbone of cryptocurrencies such as Bitcoin, blockchain is now being used not only in the financial world but also across many different industries. Blocks record transactions, and each block is linked to the previous one, forming a chain. This structure makes data immutable, tamper-proof, and transparent. Key Features: Decentralization: Not controlled by a s2024-11-28
