Regulators Unleash a New Era — XRP ETFs Surge as Commodity Status Clears the Path

Canadian XRP ETFs have achieved a significant milestone, with assets under management (AUM) surpassing C$150 million as of September 2025, making the XRP-focused XRPQ the largest regulated altcoin ETF in the country. The ETF, which launched in June, has drawn early support from major institutional backers, including Ripple, which is reported to have made an early investment. XRPQ is operating with waived management fees for its first six months, further enhancing its appeal to investors seeking regulated exposure to XRP. This momentum has come amid broader growth in the Canadian ETF market, where the average number of ETF launches per trading day has reached 1.4 in 2025, with active ETFs accounting for over 60% of new launches. Crypto and single stock ETFs have emerged as particularly popular product categories, with XRP and Solana ETFs attracting retail and institutional interest.

The surge in XRP ETF inflows coincides with a period of heightened institutional interest in XRP, driven in part by regulatory developments. In August 2025, the U.S. Securities and Exchange Commission reclassified XRP as a commodity, removing a long-standing regulatory cloud and opening the door for potential ETF approvals. In response, BlackRock has reportedly been considering a U.S.-listed spot XRP ETF, a move that could further accelerate institutional adoption. The reclassification has also led to increased optimism among analysts, with some noting that a spot XRP ETF could replicate the success of Bitcoin and Ethereum ETFs in drawing multi-billion-dollar inflows. On the derivatives market, Polymarket traders have priced a 77% probability of a spot XRP ETF approval in 2025.

Technical indicators also suggest XRP is in a pivotal phase of consolidation. Over the past six trading days, XRP has oscillated within a symmetrical triangle pattern—a well-known formation in technical analysis that often precedes a sharp price move. Analysts have estimated that a breakout in either direction could result in a 25% price swing, potentially pushing XRP to $3.50 or pulling it back to $2.10. Current price action shows the token trading near $2.80 with key support at $2.84, a level that has held firm on multiple retests. On-chain data further supports the bullish case, with investors accumulating over 1.7 million XRP in the past month—marking the largest accumulation spike in two years.

Despite these positive developments, analysts have highlighted potential headwinds. Exchange reserves for XRP have hit a 12-month high, signaling possible distribution pressure that could temper the asset’s upward momentum. Additionally, the XRP Network Value to Transactions (NVT) ratio has reached its highest level in two months, suggesting a short-term overvaluation. High NVT readings can often precede a pullback as price growth outpaces fundamental network activity. Open interest in XRP derivatives has declined by 36% in Q3, indicating a reduction in speculative trading and a potential shift toward more long-term positioning.

The broader ETF market in Canada and the U.S. is experiencing unprecedented growth, with 211 new ETFs launched in Canada and 570 in the U.S. in 2025—on pace to exceed the annual totals of the previous year. Active ETFs are the primary drivers of this growth, with over 60% of new launches in Canada and over 85% in the U.S. being actively managed. The Canadian market has seen particular momentum in crypto ETFs, including the first spot Solana and XRP ETFs in North America. The Solana-focused SOLQ has already surpassed C$300 million in AUM, while XRPQ continues to grow rapidly. Fee waivers and institutional backing, including support from SkyBridge Capital and ARK Invest for SOLQ, have helped these products gain traction.