XRP Surges Ahead in Race for Spot Crypto ETF Approval

XRP has emerged as the frontrunner in the race for the next U.S. spot cryptocurrency ETF approval, according to a recent analysis by Kaiko. With ten active ETF filings, XRP currently surpasses Solana (SOL), which has five filings, while Litecoin (LTC) and Dogecoin (DOGE) follow with three each.

Liquidity Positions XRP as a Top Candidate

One of XRP’s strongest advantages lies in its high market liquidity. It boasts the highest 1% market depth among major altcoins—a key indicator of liquidity near market price levels. This metric is closely monitored by the U.S. Securities and Exchange Commission (SEC), as it reflects an asset’s capacity to support large-volume transactions without substantial price disruption, a vital characteristic for ETF structuring.

Rising Domestic Volume Strengthens XRP’s Case

Since its 2021 delisting from U.S. exchanges, XRP has witnessed a notable recovery in domestic trading volume. The asset’s U.S. market share has rebounded to pre-delisting levels, contrasting sharply with Solana’s domestic share, which has declined from approximately 30% to 16%. This resurgence enhances XRP’s appeal as a viable ETF candidate under SEC evaluation.

Institutional Momentum and Regulatory Shifts

Further bolstering XRP’s position is the recent launch of a 2x leveraged XRP ETF by Teucrium, offering investors amplified exposure to XRP’s daily price movements. The approval of such a leveraged product could signal growing regulatory comfort with XRP-based instruments, potentially paving the way for a standard spot ETF.

Meanwhile, broader regulatory dynamics are shifting. The appointment of Paul Atkins—a figure noted for his pro-crypto stance—as the new SEC Chair has sparked optimism among industry observers, who anticipate a more open regulatory environment for cryptocurrency ETFs.

A Decision Point Approaches

The SEC is expected to issue a decision on Grayscale’s XRP spot ETF application by May 22, 2025. This ruling is widely viewed as a potential bellwether for future altcoin ETFs. Despite positive indicators, options market data reveal a bearish tilt in implied volatility for XRP, with investors exhibiting caution through elevated demand for downside protection.