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XRP-based ETFs are gaining traction in the market as regulatory uncertainties related to the asset are being resolved. Steven McClurg, CEO of Canary Capital, has stated that
ETFs could potentially outperform ETFs as the market absorbs the implications of the U.S. Securities and Exchange Commission’s (SEC) decision to conclude its long-standing lawsuit against [1]. This legal closure has been interpreted as a major turning point, reducing perceived risks for investors and fostering increased confidence in XRP-related products [2].Following the court ruling in July 2025, XRP experienced a 28% price surge, reaching $3.30, signaling strong investor sentiment [2]. The improved regulatory clarity has enabled futures-based XRP ETFs to exceed $1 billion in inflows, with analysts suggesting that this could set the stage for spot XRP ETFs [3]. While Ethereum ETFs have also seen strong performance—over $6.7 billion in inflows in 2025—XRP ETFs have shown faster growth, particularly in the wake of the legal resolution [1].
The broader market is also showing increased interest in alternative cryptocurrencies. Futures-based
and XRP ETFs have demonstrated rapid inflows, reflecting a growing appetite for altcoins with solid institutional backing [3]. Analysts note that while Ethereum remains a top-performing altcoin, XRP’s recent trajectory, supported by regulatory clarity and strong inflows, may position it as a competitive alternative in the ETF space [5].Despite these developments, Ethereum still holds a dominant position in the digital asset market and continues to outperform many traditional assets [6]. However, the regulatory challenges that previously limited XRP are now behind it, potentially allowing XRP ETFs to capture a larger share of investor interest in the coming months [1].
Analysts remain cautious, emphasizing that the ultimate success of XRP ETFs will depend on broader market conditions, investor behavior, and global trends [7]. While some forecasts suggest that Ethereum may face downside risks, including the possibility that other assets could outperform it in 2025, the competitive landscape is evolving rapidly [7].
As institutional adoption of XRP-based products accelerates, the market is watching closely to see whether XRP ETFs can sustain their upward momentum. The resolution of the SEC lawsuit has not only removed legal barriers but also contributed to a more favorable investment environment for XRP. With the asset now positioned as a viable alternative to Ethereum in the ETF space, the coming months will be critical in determining the long-term trajectory of both XRP and Ethereum ETFs [1].
Source: [1] Canary Capital CEO Says XRP ETF Will Surpass ETH ... (https://coingape.com/canary-capital-ceo-says-xrp-etf-will-surpass-eth-etfs-as-sec-confirms-lawsuit-end/)
[2] XRP News Today: XRP Surges 28% Post-Court Win, Eyes ... (https://www.ainvest.com/news/xrp-news-today-xrp-surges-28-post-court-win-eyes-5-05-2026-2508/)
[3] Futures-Based SOL and XRP ETFs Surpass $1B Inflows ... (https://www.facebook.com/photo.php?fbid=742559201990624&set=a.130****63246274&type=3)
[4]
, , XRP, and more cryptocurrencies to watch this ... (https://qz.com/gateway/bitcoin-bnb-xrp-trump-cryptocurrencies-to-watch-1851770312)[5] Should You Forget XRP and Buy This Soaring ... (https://www.aol.com/forget-xrp-buy-soaring-cryptocurrency-083300547.html)
[6] Where Will XRP Be in 3 Years? (https://www.aol.com/where-xrp-3-years-120500835.html)
[7] ETH Faces 20% Downside, Analysts Say RBLK Offers a ... (https://coincentral.com/eth-faces-20-downside-analysts-say-rblk-offers-a-more-convincing-roi-case/)

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