.png){kind=logo}
The US Securities and Exchange Commission (SEC) has enacted policy changes that might fast-track the listing process of crypto exchange-traded products (ETPs), especially those related to XRP. Among other key changes is the introduction of the in-kind creation and redemption procedures to crypto ETFs. Crypto lawyer Bill Morgan stated that this transition pairs crypto ETPs with the commodities-backed fund regulatory treatment.
The policy now allows ETFs to use actual cryptocurrency assets for issuance and redemption, rather than cash. This shift will increase operational efficiency and potentially accelerate regulatory review. Morgan noted that standardizing crypto ETPs concerning gold and commodity-linked ETFs could simplify institutional market adoption.
A separate proposal submitted by Cboe aims to list any crypto-based ETF automatically, provided specific criteria are met. If completed, the rule would allow funds to bypass case-by-case SEC crypto policy, provided the underlying assets had been trading as regulated futures for at least six months. XRP, which meets this criterion, becomes a key contender under the proposed listing framework.
Bloomberg analyst Eric Balchunas estimates that XRP ETF approval could be between September and October 2025. He pointed out that the rule change opens the door for “a dozen of the usual suspects,” which includes Solana, Dogecoin, and other high-volume altcoins with established futures markets. Legal expert Greg Xethalis noted that the Cboe filing may prompt similar actions from Nasdaq and NYSE.
Also Read: SEC Approves Grayscale’s Multi-Asset GDLC ETF Tracking BTC, ETH, XRP, SOL, ADA
The evolution in the regulatory situation has led to more institutional demand in terms of XRP exposure. According to analysts, SEC approval of an XRP ETF is likely to be done within this year at a probability of 85%. XRP price is around $3.15, and technical indicators suggest that it might gain further momentum once clarity on regulations is achieved.
Canada’s active XRP ETFs have already shown strong inflows from institutional and retail investors. Teucrium’s leveraged XRP fund, launched in April, surged 50% in July and now holds nearly $400 million in assets. US-based investors may gain similar access if the SEC finalizes current proposals.
JPMorgan analysts estimate that spot XRP ETFs could attract up to $8 billion in inflows within their first year. The SEC's decision to adopt a more standardized approach to listing crypto ETFs, coupled with escalated institutional demand, may help XRP become one of the earliest altcoins to gain US ETF approval.
