With increasing liquidity and market depth, Ripple and XRP are drawing the attention of institutional investors, as six ETF filings await approval from the SEC.
XRP and the ETF Market Back in the Spotlight
The race for the first spot crypto ETFs is heating up, and XRP is once again taking center stage. With new leadership at the SEC — Paul Atkins — there is growing hope that the regulator will adopt a more favorable stance toward digital assets.
Several spot ETF applications have already been submitted, including for XRP and Solana (SOL), which are considered front-runners due to their increasing liquidity and institutional interest.
Why Market Depth Is Key for an XRP ETF
While trading volume reflects the number of executed trades, market depth measures how much can be bought or sold without significantly impacting the price. Analyst WrathofKahneman notes that market depth is more important for ETF approval, as it ensures stability during large-scale transactions.
According to an April report by Kaiko, XRP and Solana lead in 1% market depth across major exchanges, with Cardano (ADA) following behind. This high liquidity strengthens the case for spot ETFs backed by real XRP reserves, which provide additional stability via the ETF share creation and redemption mechanism.
Ripple Expands Its Institutional Position
Ripple made a strategic move by acquiring digital brokerage Hidden Road for $1.25 billion. The deal adds substantial institutional depth to the XRP ecosystem, making the asset even more attractive for large-scale investment products like spot ETFs.
This positions XRP not only as a liquid asset but also as a solid choice for long-term institutional portfolios.
The Market Remains Cautious
Despite rising optimism, market participants remain cautious. Data from Deribit shows that traders are placing protective bets, signaling short-term uncertainty.
Additional pressure comes from China’s new 125% tariffs on U.S. goods, which increase global financial uncertainty and reduce risk appetite.
Upcoming ETF Decisions: A Pivotal Week for XRP
Between October 18 and 25, the SEC is expected to review six spot XRP ETF filings, including the one from Grayscale, which could receive a decision as early as this week.
The other applicants are 21Shares, Bitwise, WisdomTree, CoinShares, and Canary Capital. These decisions could shape not only the future of XRP but also the entire crypto ETF market paradigm in 2025.
Conclusion
With new SEC leadership and increasing market depth, the chances of an XRP ETF approval have never been higher. Despite global uncertainty, Ripple continues to build a solid institutional infrastructure that could make XRP one of the first approved spot ETFs in this new regulatory era.
Frequently Asked Questions
Find answers to the most common questions below.
Paul Atkins is the new SEC Chair, and he's expected to take a more crypto-friendly stance, raising hopes for XRP ETF approval.
Market depth ensures price stability during large trades, making XRP a strong candidate for institutional-grade ETFs.
Applicants include Grayscale, Bitwise, 21Shares, WisdomTree, CoinShares, and Canary Capital.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
