XRP ETF Approval Odds Soar as Expert Warns Demand Is Severely Underestimated

Soaring Confidence in XRP ETF Approval

XRP is gaining momentum in financial markets as optimism over a spot ETF approval continues to rise. Data from prediction market Polymarket shows approval odds climbing to 94% on Sept. 7, up from 86.8% at the end of August. This sharp increase reflects growing investor belief that the SEC is leaning toward granting approval.

Analysts say the latest surge in confidence signals a recalibration of expectations. The move highlights not only regulatory progress but also growing recognition of XRP’s role in the expanding digital asset ecosystem. If approval is secured, 2025 could become a breakout year for XRP and related crypto investment products.

Experts See Near-Certain Approval

Nate Geraci, president of Novadius Wealth Management and co-founder of The ETF Institute, suggested that approval odds may be even stronger than market predictions indicate. “Personally think closer to 100% … People are severely underestimating investor demand for spot XRP & SOL ETFs. Just like they did w/ spot BTC & ETH ETFs,” he posted on X.

This perspective aligns with Bloomberg ETF analysts James Seyffart and Eric Balchunas, who maintain a 95% approval estimate. Their analysis underscores the narrative that the regulatory landscape is shifting toward a more favorable stance on digital asset ETFs.

Amendments Signal SEC Engagement

Several asset managers—including Canary, Coinshares, Franklin, 21Shares, Wisdomtree, and Bitwise—have recently amended their XRP ETF filings. These coordinated updates are widely seen as signs of active dialogue with the SEC. Historically, such iterative amendments often precede approvals, suggesting that momentum within the regulatory pipeline is accelerating.

The timing of these amendments indicates issuers are addressing SEC staff feedback, strengthening the case that formal approval could come soon. This trend mirrors the review process of Bitcoin and Ethereum ETFs prior to their eventual greenlight.

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Institutional Demand Rising Fast

Industry experts emphasize that institutional investors could be among the biggest beneficiaries of an XRP ETF. With Bitcoin and Ethereum already trading in regulated ETF structures, the addition of XRP would extend compliant access to another top-tier digital asset.

Ripple CEO Brad Garlinghouse has repeatedly said that an XRP ETF is “inevitable,” arguing that the product would unlock broader adoption. If institutions begin allocating capital through these ETFs, the inflows could trigger significant market shifts, both in liquidity and price discovery.

ETF Analysts Highlight October Decision Window

Geraci also noted that major exchanges are working quietly with the SEC to finalize generic listing standards for spot crypto ETFs. With several filings approaching final deadlines in October, analysts suggest this could be the window where approval occurs. If so, the “floodgates” of crypto ETF products may open, providing investors with unprecedented access to the asset class.

This timeline sets the stage for XRP to join the ranks of bitcoin and ethereum in regulated markets. Should approval come by late 2025, institutional and retail investors alike could see XRP enter a new growth phase.

What an XRP ETF Means for Crypto Markets

The launch of an XRP ETF would mark another milestone in crypto’s integration with traditional finance. Beyond the regulatory breakthrough, the sheer demand from institutions seeking diversified exposure could fuel massive inflows. Analysts argue that early market skepticism underestimates how transformative this product could be.

For now, XRP remains under close watch. As approval odds soar, anticipation builds that the next wave of ETFs may finally broaden the scope of crypto investment opportunities.

IMPORTANT NOTICE

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