XRP News Today: Regulators Could Unlock $5B XRP ETF Floodgate as Demand Grows Quietly

Nate Geraci, a prominent voice in the ETF and cryptocurrency markets, has reiterated his belief that demand for XRP-based exchange-traded funds (ETFs) is being significantly underestimated. Drawing comparisons to the initial underestimation of Bitcoin and Ethereum ETFs, Geraci argues that the market has yet to fully grasp the potential for institutional and retail interest in XRP ETF products. He points to the recent rise in Ethereum ETF inflows as a precedent for how investor sentiment can shift rapidly once a market is opened to regulated crypto exposure [4].

This sentiment is supported by recent SEC filings and growing institutional interest in XRP-related products. Amplify, a firm managing $12.6 billion in assets, has submitted a proposal for an XRP Option Income ETF to be listed on the Cboe BZX Exchange. The fund will not hold XRP directly but will instead seek to generate yield by writing options on XRP ETFs and using synthetic exposure strategies [3]. This filing highlights the evolving landscape of crypto ETF structures, with investors increasingly seeking indirect exposure through options and derivative strategies to mitigate custody and operational risks [3].

The growing number of ETF applications underscores a broader trend in the market. As of the latest data, 16 XRP ETF applications are pending with the SEC, including bids from major players like Grayscale, 21Shares, Canary, and Franklin Templeton. Additionally, there are at least 96 total crypto-related ETF filings under review, reflecting the heightened regulatory and investor attention the sector is receiving [3]. Analysts like James Seyffart have noted that the SEC’s October deadline is a key focus, with expectations that multiple proposals could be approved around that time.

Geraci’s predictions are aligned with the broader industry trend, as seen in the performance of spot Ethereum ETFs. These products have outpaced their Bitcoin counterparts in recent weeks, with Ethereum ETFs attracting $307 million in net inflows on one day alone. Over the past two weeks, Ethereum ETFs have drawn $1.83 billion in total inflows compared to only $171 million for Bitcoin ETFs. BlackRock’s ETHA product, for example, received $262.6 million in a single day, highlighting the shift in investor preference toward Ethereum and, potentially, other altcoins [4].

While Bitcoin remains the dominant narrative in crypto markets, the momentum around Ethereum and XRP ETFs suggests a diversification in investor interest. The success of Bitcoin and Ethereum ETFs has demonstrated the potential for institutional adoption, and analysts believe a similar pattern could occur for XRP if the SEC approves a spot ETF. Institutional access to a regulated XRP ETF would open the door for pension funds, asset managers, and other large investors, which could lead to a surge in demand and liquidity [2].

The market is closely watching how the SEC handles these filings and whether the regulatory landscape will shift further in favor of spot crypto ETFs. Geraci has noted that the floodgates for crypto ETFs appear to be opening, with increased filings and investor interest driving the momentum. As more applications are filed and the regulatory environment evolves, the potential for XRP ETFs to attract substantial demand remains a key talking point among investors and market analysts alike [1].

Source:

[1] Nate Geraci predicts rising demand for spot XRP and SOL ... (https://tradersunion.com/news/market-voices/show/472762-xrp-sol-etf-demand/)

[2] Ripple ETF Decision Looms as Analysts Set Ambitious $5 ... (https://coincodex.com/article/72381/ripple-etf-decision-looms-as-analysts-set-ambitious-5-target-for-xrp/)

[3] SEC Receives Filing For XRP Option ETF From $12-B ... (https://www.mitrade.com/insights/news/live-news/article-3-1082539-20250831)

[4] Spot Ethereum ETFs outpace Bitcoin counterparts with ... (https://www.mexc.co/en-IN/news/spot-ethereum-etfs-outpace-bitcoin-counterparts-with-307m-in-inflows/76856)