XRP ETF Momentum Builds: Bitwise Clears Key Hurdle in $8 Billion Race

The crypto investment landscape is shifting rapidly, and Bitwise has just taken a significant step toward launching a spot XRP exchange-traded fund (ETF). The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Bitwise’s application, positioning it alongside Grayscale and 21Shares as early contenders in the XRP ETF race. While this isn’t an outright approval, it signals a notable change in regulatory attitude, potentially paving the way for a major influx of institutional capital.

The XRP ETF Boom: Why It Matters

According to Lucas Sorlini, product head at institutional crypto platform Northstake, the chances of an XRP ETF approval are high. This growing optimism is fueled by shifting regulatory dynamics and the precedent set by Bitcoin and Ethereum ETFs. Market predictions suggest that XRP ETFs could attract between $400 million and $800 million in inflows within their first week, with JPMorgan projecting up to $8 billion within the first year.

However, BitGalactic analysts emphasize that these estimates hinge on multiple factors, including macroeconomic conditions, investor sentiment, and how the SEC handles other altcoin ETF applications. Solana, Litecoin, and even Dogecoin ETF proposals are already in the mix, reflecting an expanding appetite for regulated crypto investment vehicles.

A Changing Regulatory Landscape

Historically, the SEC has been dismissive of crypto ETF applications, often rejecting them outright. But recent developments suggest a major shift in approach. The SEC has acknowledged multiple XRP ETF applications, and market watchers believe Ripple’s ongoing legal battle with the SEC could soon see a resolution. John Reed Stark, a former SEC enforcement chief, even speculated that the agency might ‘pause’ its appeal against Ripple’s legal victory, further hinting at a regulatory pivot.

Additionally, the SEC’s decision to pause lawsuits against Binance and Coinbase, combined with the formation of a new crypto task force led by Commissioner Hester Peirce, signals a potential thaw in relations between regulators and the crypto industry. The upcoming U.S. elections could also play a role, as former President Donald Trump has vowed to ease crypto regulations should he return to office.

Measuring Up to Bitcoin and Ethereum ETFs

Bitcoin ETFs shattered expectations with $1.6 billion in inflows within their first week, proving that demand for crypto ETFs is real. However, Ethereum ETFs struggled, facing net outflows of $483 million largely due to Grayscale’s Ethereum Trust conversions.

Could XRP ETFs perform better? BitGalactic analysts believe so. XRP has a dedicated community, strong institutional backing, and potential use cases in cross-border payments that distinguish it from other altcoins. Additionally, S&P Global reports that 40% of surveyed fund managers are open to investing in altcoins, including XRP. If approved, XRP ETFs could serve as a benchmark for future altcoin ETFs, setting the stage for a new wave of institutional crypto investment.

The Road Ahead

While an SEC acknowledgment is far from a final approval, the momentum is undeniable. With multiple firms—including Bitwise, Grayscale, and CoinShares—entering the XRP ETF race, competition is heating up. The next few months will be critical in determining whether XRP can replicate Bitcoin’s ETF success or if it will face the same hurdles that slowed Ethereum’s ETF adoption.

BitGalactic will continue to monitor the regulatory landscape, institutional sentiment, and market movements as the XRP ETF story unfolds. Whether this marks the beginning of an altcoin ETF revolution or just another chapter in crypto’s ongoing battle with regulators, one thing is clear: the stakes have never been higher.