Optimism is soaring within the cryptocurrency community as XRP’s potential for a spot ETF launch seems increasingly likely. Steve McClurg, CEO of Canary Capital, recently forecasted a staggering $5 billion in inflows for the XRP spot ETFs within their first month, a figure that, if realized, could surpass Ethereum ETFs, which have struggled to captivate institutional investors.
Ethereum ETFs Struggle While XRP Stirs Enthusiasm
The cryptocurrency landscape witnessed a pivotal moment when Bitcoin made its foray into the ETF market, attracting $1.5 billion in net inflows in January 2024. By mid-February, that number had more than doubled to $3.3 billion—an impressive feat by any measure. However, Ethereum’s journey has been less triumphant. July 2024 saw Ethereum spot ETFs experience a $480 million outflow, followed by another $5.6 million loss the next month. This follows a pattern of institutional adoption, which we detailed in Bitcoin, Ether ETF Flows Hint at Incoming Altcoin Bull Run: Crypto Daybook Americas.
In stark contrast, McClurg is bullish on XRP’s prospects. He argues that XRP’s prominent status in financial circles—second only to Bitcoin—coupled with fervent support from the “XRP Army,” will drive substantial ETF adoption. “XRP’s recognition on Wall Street is a game-changer,” he stated during a recent interview. “It’s not just about cryptocurrency enthusiasts; it’s about mainstream acceptance.”
Rising Odds Of An XRP ETF In 2025
Confidence in an XRP ETF being approved this year is on the rise. Analysts have increased their odds from 80% to 85%, reflecting a growing belief in its imminent launch. McClurg echoed this optimism, suggesting that other cryptocurrencies like Solana, Litecoin, and HBAR could also see ETF approvals before year’s end. “XRP futures are already in play,” he noted, emphasizing this as a stepping stone towards a spot ETF.
From McClurg’s perspective, XRP’s focus on payments and cross-border settlements gives it an edge over Ethereum, which is largely built on smart contracts and decentralized applications. This clear use case, he argues, resonates more with Wall Street’s financial titans who prefer straightforward, regulated investment vehicles. As explored in our recent coverage of XRP Jumps 6% to Top Market Gainers as Bitcoin Retakes $111K, XRP’s market movements continue to capture significant attention.
Historical Context and Market Trends
Historically, Bitcoin has set the standard for ETF success within the crypto realm, leaving other tokens scrambling to replicate its triumph. Ethereum’s less-than-stellar performance poses questions about the broader appeal of crypto ETFs to institutional investors. The narrative around Ethereum’s struggle may well play into XRP’s favor, with its promise of being a simpler, more direct financial service product.
Curiously, the Grayscale Ethereum Trust (ETHE) has been a significant factor in Ethereum’s ETF woes, with funds moving away from it, further complicating the situation. Whether XRP can avoid similar pitfalls remains to be seen, but McClurg’s confidence suggests a belief that XRP’s market position will circumvent such issues.
Forward-Looking Implications
As we edge closer to potential approval dates, the crypto community watches with bated breath. Will XRP redefine expectations for cryptocurrency ETFs? Or will it face the same hurdles as its predecessors? McClurg’s insights provide a compelling narrative, yet uncertainties linger. The implications of a successful XRP ETF launch could ripple across the financial landscape, prompting a reevaluation of how digital assets are integrated into mainstream finance.
In this dynamic arena, nothing is set in stone. The only certainty is that the crypto world is poised for further evolution—what shape that takes remains an open question.
Source
This article is based on: XRP ETF Launch Could See $5B Inflows, Outpacing Ethereum ETFs: CEO
Further Reading
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- Fidelity Highlights Ethereum’s Unique Position Between Bitcoin and Solana
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
