Ripple ETFs ahead: Is Wall Street now rushing for XRP?

For months, XRP investors have been hoping for the imminent approval of Ripple Spot ETFs by the U.S. Securities and Exchange Commission (SEC). However, despite the prospects for approval appearing good due to the crypto regulatory shift in the U.S., the decision on several XRP ETF applications has recently been postponed again. Furthermore, BlackRock, the world's largest asset manager, has revealed that it currently has no interest in an XRP product. Since BlackRock operates the most successful index funds in both the Bitcoin and Ethereum ETF markets, the potential for Ripple exchange-traded funds now appears limited.

Presumably, the market leader is deliberately allowing smaller competitors to take the lead as a precaution and wants to wait and see whether traditional investors show any interest in XRP at all. Nevertheless, there are plenty of spot ETF applications for the Ripple coin, including those from Grayscale, ProShares, WisdomTree, Bitwise, and 21Shares. What should now be further encouraging for crypto investors is that the XRP Futures ETFs have reached an open interest of one billion US dollars just three months after trading began on the Chicago Mercantile Exchange (CME) – a historic record.

We never said no demand. We did however make up an easy to remember rhyme to describe how old coin etfs will likely play out: “the further away you get from btc, the fewer assets there will be.” https://t.co/661keZboUt

— Eric Balchunas (@EricBalchunas) August 27, 2025

This impressive speed is now triggering a new round of speculation about the potentially underestimated potential of Ripple Spot ETFs. “There are already over $800 million worth of futures-based XRP ETFs. I believe the demand for XRP Spot ETFs is underestimated,” writes Nate Geraci of NovaDius Wealth Management optimistically.

Bloomberg analyst Eric Balchunas, who has dampened the expectations of many Ripple enthusiasts in the past, feels compelled to clarify: “We never said there is no demand.” Instead, he and his colleague James Seyffart coined a catchy phrase to describe how altcoin ETFs are likely to develop: “The further you move away from BTC, the less capital there will be.”

Ripple realism versus utopian XRP predictions

Since XRP's market capitalization, currently at $178 billion, is less than a tenth of the value of all circulating Bitcoin, the Ripple coin could already benefit from significantly more modest net inflows than the leading cryptocurrency. Since trading began in January, approximately $54 billion has flowed into Bitcoin ETFs from BlackRock, Fidelity, and others—along with purchases by treasury firms like Strategy and Metaplanet, undoubtedly one of the main drivers of the BTC price.

Applied to the XRP market capitalization, this would mean that if approximately $4.3 billion of fresh Wall Street capital flowed into the Ripple Spot ETFs, this could already have a comparable effect. Given that the probability of SEC approval for the XRP index funds in 2025 is 82 percent, the scenario of a new Ripple price rally in the fourth quarter is not far-fetched.

This sum also aligns with a JPMorgan report from January, according to which the Ripple coin “could receive $4 billion to $8 billion in new capital in its first year of ETF trading.” Nevertheless, investors shouldn't be fooled by crazy XRP price predictions. For example, crypto influencer “Pumpius” recently wrote on X about a “blueprint for a multi-trillion dollar upgrade” and suggested an XRP price of no less than $10,000.

Given the 59.5 billion Ripple coins currently in circulation, that would correspond to a market capitalization of a whopping $595 trillion – roughly the combined value of stocks, real estate, bonds, and all other human assets. Learn why many Ripple predictions are beyond belief, despite bullish signs, in this article: “Will the XRP price explode to $1,000?”

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