Report shows XRP ETFs leading race for US approval

The competition to introduce altcoin ETFs is intensifying, with XRP ETFs leading the race towards being the first to receive approval in the United States, reveals a recent report from Kaiko Research. XRP, the native token of Ripple, currently ranks as the fourth-largest cryptocurrency with a market cap of $123.5 billion. While its price has seen a substantial increase of over 300% in the past year, it still remains significantly below its all-time peak of $3.84 attained in January 2018.

According to analysts at Kaiko Research, XRP ETFs stand out as having a higher likelihood of gaining approval before solana ETFs due to two key factors. Firstly, the liquidity of XRP has significantly increased, with the share of spot volume on US exchanges reaching its highest level since before the SEC’s lawsuit in 2021, which triggered widespread delistings. Secondly, the recent introduction of a 2x XRP ETF by Teucrium Investment Advisors on April 8 positions XRP ahead of other assets in terms of approval prospects.

Jake Hanley, managing director at Teucrium, explained that the decision to launch the 2x leveraged ETF was driven by a perceived demand for such a product, which proved to be correct despite concerns about market volatility due to tariffs. XRP ETFs already have a head start in the regulatory process, with filings from prominent entities like Grayscale, Bitwise, Canary, 21Shares, and WisdomTree being acknowledged by the SEC in February. The deadline for most of these approvals is set for October, with May 22 being a critical date to monitor in light of the recent approval of a 2x XRP ETF by Teucrium.

Among altcoin ETF filings, XRP leads the pack, followed closely by solana, litecoin, dogecoin, and avalanche. Proshares, the first to launch a solana ETF in Canada, has seized the opportunity to capitalize on the momentum surrounding XRP. The company amended its January filing for three futures-based XRP ETFs on April 15, targeting an initial launch on April 30, as confirmed by regulatory filings.

Experts like Nic Puckrin, founder of Coin Bureau, expressed their view that while many anticipated solana ETFs to gain approval first, the current strength of XRP makes it a more likely candidate. The recent resolution of the legal dispute between Ripple and the SEC, coupled with the acquisition of Hidden Road, has bolstered momentum in favor of XRP. Additionally, XRP has garnered significant interest from US retail investors and boasts robust liquidity, further enhancing its position.

In a significant development, Ripple and the SEC were granted a pause on appeals on April 16 after a prolonged legal battle. This indicates that both parties have reached an “agreement-in-principle,” signaling the potential conclusion of this protracted legal dispute.