XRP's Regulatory Breakthrough and Undervaluation: A Case for a New Bull Run

The approval of the first U.S. XRP spot ETF by the Securities and Exchange Commission (SEC) marks a seismic shift in the cryptocurrency landscape. Canary Capital's XRP ETF, set to launch on Nasdaq under the ticker XRPC on November 13, 2025, is a regulated investment vehicle that holds actual XRP tokens, offering investors direct exposure to the asset's price movements, according to Coinotag. This development, coupled with the automatic approval of five other XRP ETFs listed on the Depository Trust and Clearing Corporation (DTCC), signals a regulatory green light for institutional and retail capital to flow into XRP, according to Cryptopolitan. But beyond the regulatory tailwinds, XRP's fundamentals-its market performance, utility, and valuation metrics-suggest it is significantly undervalued relative to Bitcoin and Ethereum.

Regulatory Tailwinds: A Gateway for Institutional Capital

The XRPC ETF, structured as a grantor trust with a 0.50% management fee, is a critical milestone. Unlike futures-based ETFs, it tracks the spot price of XRP via the XRP-USD CCIXber Reference Rate Index, according to Coinotag. This structure eliminates the volatility risks associated with derivatives and aligns investor interests with XRP's real-world utility. Ripple's strategic retention of 25% of all XRP tokens further underscores long-term confidence in the asset, according to Coinpedia.

The SEC's approval reflects a broader shift in regulatory sentiment. While Bitcoin and Ethereum ETFs have dominated headlines, the XRP ETF's rapid approval-without the need for a legal battle-highlights the SEC's growing recognition of XRP's utility in cross-border payments and its compliance with securities laws, according to Coinotag. This could catalyze a wave of institutional adoption, particularly from corporations using XRP for treasury management and real-time settlement, according to Coinpedia.

XRP's Q3 2025 Outperformance: A Tale of Utility and Adoption

In Q3 2025, XRP's market capitalization surged to $170.3 billion, a 29% quarter-over-quarter (QoQ) increase, according to Coinpaper. This outpaced the combined growth of Bitcoin, Ethereum, and Solana, which rose by just 13.3% QoQ, according to Coinpaper. XRP's price climbed to $2.85, a 29% QoQ gain, driven by both price appreciation and a 1.4% expansion in circulating supply, according to Coinpaper. Year-over-year, its market cap grew by 392.6%, a stark contrast to Bitcoin's and Ethereum's more modest gains, according to Coinpaper.

This performance is underpinned by real-world adoption. The XRP Ledger (XRPL) processed 1.8 million daily transactions in Q3 2025, a 9% QoQ increase, according to Messari. New wallet addresses surged by 46% to over 447,000, indicating broadening user adoption, according to Coinpedia. Meanwhile, Ripple's RLUSD stablecoin expanded its market cap by 34.7% to $88.8 million, and real-world assets (RWAs) on the XRPL grew by 215%, according to Coinpedia. These metrics highlight XRP's role as a bridge between traditional finance and blockchain, particularly in cross-border payments, where it offers lower costs and faster settlement times compared to legacy systems, according to Coinpaper.

Valuation Metrics: XRP's Deflationary Edge and Undervaluation

To assess XRP's undervaluation, consider its market cap to transaction volume ratio. In Q3 2025, XRP's $170.3 billion market cap was supported by 1.8 million daily transactions, according to Messari. By comparison, Bitcoin's market cap (estimated at over $1 trillion) processes far fewer transactions relative to its size, as most activity is dominated by speculative trading rather than utility-driven use cases, according to Coinpedia. Ethereum, while more transaction-heavy, still lags in price-to-utility alignment given its high gas fees and energy consumption, according to Coinpedia.

XRP's deflationary mechanics further strengthen its case. Transaction fees on the XRP Ledger are systematically burned, reducing supply over time, according to Messari. Meanwhile, Ripple releases 1 billion XRP monthly from escrow, balancing supply dynamics, according to Messari. This contrasts with Bitcoin's fixed supply model, which, while deflationary, lacks the utility-driven demand that XRP enjoys in cross-border payments, according to Coinpedia.

The Road Ahead: ETFs as a Catalyst for Mainstream Adoption

The XRPC ETF's launch is just the beginning. With five additional XRP ETFs pending approval, the asset is poised for unprecedented liquidity and accessibility, according to Cryptopolitan. This could trigger a virtuous cycle: increased ETF inflows driving XRP's price higher, which in turn attracts more institutional interest and corporate adoption, according to Coinpedia.

However, risks remain. Bitcoin's dominance in the crypto market could see a rebound if the SEC approves more Bitcoin ETFs in 2026, according to Coinpedia. Additionally, macroeconomic factors-such as interest rate cuts or regulatory shifts-could impact risk-on assets. Yet, XRP's unique position as a utility-driven asset with regulatory clarity gives it an edge over speculative peers, according to Coinpaper.

Conclusion: A Compelling Investment Thesis

XRP's regulatory breakthrough, combined with its outperformance in Q3 2025 and robust utility metrics, presents a compelling case for a new bull run. The XRPC ETF not only legitimizes XRP as an investable asset but also opens the door for mainstream adoption. For investors seeking exposure to a cryptocurrency with real-world utility, deflationary mechanics, and regulatory tailwinds, XRP is undervalued relative to its peers-and the first XRP ETF may be the spark that ignites its next phase of growth.