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In a big move that will possibly redefine crypto investing in America, XRP is coming through as the altcoin most poised to get its spot ETF approved over its peers such as Solana, Cardano, and Litecoin. In a report released on Monday, market intelligence provider Kaiko attributed XRP’s front-runner position to its rocketing US liquidity, beneficial legal decisions, and newly established ETF offerings. XRP Surpasses Competitors in Liquidity and Market Depth XRP, the fourth-largest cryptocurrency in terms of market cap, has reached its highest spot trading volume on US exchanges since 2020, before a longstanding SEC lawsuit precipitated mass delistings.
Kaiko says XRP has already overtaken Solana (SOL) for 1 percent market depth on approved platforms and now has twice the liquidity of Cardano (ADA), bolstering its argument for a regulated investment vehicle. “XRP’s favourable market trends put it ahead of other altcoins in terms of spot ETF approval,” Kaiko analysts added. Regulatory Headwinds Ease Following Ripple’s Partial Win XRP’s prospects were greatly improved after Ripple, the fintech company behind the token, partly won its lawsuit with SEC in 2023.
A court ruled that the sales of XRP on crypto exchanges to retail investors were not securities, even though institutional sales of US$728 million were found to be unregistered. Ripple subsequently paid a US$50 million fine to settle the case, removing a big regulatory barrier. This decision, combined with the SEC’s earlier endorsement of leveraged XRP products, makes the case for a more traditional spot ETF stronger.
This month, Teucrium Investment Advisors launched a 2X leveraged XRP ETF, which listed with US$5 million in volume, its biggest product launch to date. Institutional Interest Increases Despite Bitcoin, Ethereum Outflows As XRP picks up steam, old-school crypto funds are experiencing record outflows. CoinShares reported that digital asset products have lost US$7.
2 billion in assets since February, the worst period of outflows the industry has ever experienced. Last week alone, investors withdrew US$751 million from Bitcoin ETFs and almost US$38 million from Ethereum funds. Nevertheless, they caution not to make too much of short-term shifts in sentiment.
“I don’t see this as anything particularly ominous,” CoinShares’ James Butterfill said. Spot ETF Uses Mount Up Prior to SEC Review Asset managers such as Grayscale, Bitwise, 21Shares, CoinShares, and Canary Capital have all submitted XRP spot ETF applications. Grayscale’s application has a make-or-break decision date of May 22.
According to analysts, Solana follows XRP, although its share in the US market has declined to 16 percent, from its high in 2022 when it was more than 25 percent. Though XRP has no rich futures market, whereas Bitcoin, having won ETF approval following Grayscale’s court victory, does, it is appealing thanks to the strong offshore trading and increasing US presence. Yet options market indicators do see some investor wariness, with Deribit exhibiting a bearish skew before the April 18 expirations.
If approved, an XRP spot ETF would represent a watershed moment for altcoin investing, further legitimising crypto assets in the eyes of US regulators and institutional investors..
