XRP’s journey through the crypto space has been remarkable, with its evolution from a niche cryptocurrency to a significant player in the financial markets. Recent developments show that XRP is becoming more integrated into the traditional financial system, as evidenced by the filings of various Exchange-Traded Funds (ETFs) tied to the asset. Notably, ProShares has recently filed for a futures-based “Short XRP ETF,” which is set to introduce as early as April 30, 2025. However, despite the growing interest and new filings, the big question remains: when will Grayscale’s XRP ETF finally get approved?

Grayscale, one of the leading names in crypto investment management, has faced challenges in having its XRP ETF proposal approved. Despite the strong momentum for XRP-based financial products, including the introduction of other ETFs, Grayscale’s proposed ETF has yet to gain the green light. This delay highlights the regulatory hurdles XRP continues to face, but it also reflects the growing interest in XRP-backed investment vehicles. With the entry of other major players like Hashdex, who recently introduced the world’s first spot XRP ETF—XRPH11, tied directly to the Nasdaq XRP Reference Price Index—XRP’s presence in the financial world is only continuing to grow. This makes the eventual approval of Grayscale’s XRP ETF a key moment to watch.

XRP ETFs: Growing Interest Amidst Regulatory Scrutiny

XRP has outpaced many altcoins, including Solana, Litecoin, and Dogecoin, in terms of ETF filings, positioning itself as the top altcoin in this space. Research from Kaiko shows that XRP has received more ETF filings than any other altcoin, marking a significant surge in demand. This is largely due to the cryptocurrency’s impressive liquidity, which plays a crucial role in securing approval for financial products like ETFs. A liquid asset is more easily tradable, making it less volatile and more suitable for institutional and retail investors alike. This liquidity, paired with increasing interest from institutional investors, is fueling XRP’s rise as a popular asset class.

Despite the growing interest, regulatory scrutiny remains a critical factor in the approval process. In particular, the U.S. Securities and Exchange Commission (SEC) has closely monitored XRP due to its classification as a security in the ongoing legal battle between Ripple Labs and the SEC. However, with Ripple’s recent legal developments and increasing market acceptance, XRP is emerging as a more legitimate asset for ETFs and other financial products.

Ripple and the Potential Impact of a Settlement with the SEC

XRP’s recent developments have drawn attention, especially with the possibility of a settlement between Ripple Labs and the SEC. Crypto analyst John Squire has indicated that a potential settlement could have a significant impact on the approval process for XRP-based ETFs. Such a resolution would likely remove one of the main regulatory hurdles preventing XRP from gaining broader acceptance. If the SEC’s legal case against Ripple concludes favorably for the company, the road to approving XRP-backed ETFs would be much smoother.

Squire views ProShares’ filing for a “Short XRP ETF” as a pivotal moment in XRP’s transition from a niche asset to a major component of traditional finance. His analysis suggests that ProShares’ action is a sign that XRP is ready to take its place in the mainstream financial system, which could influence how regulators approach the approval of more XRP-related financial products. Furthermore, industry experts like Paul Atkins, a prominent regulatory figure, have started to recognize XRP’s potential to serve as a core infrastructure for future finance, signaling a growing acceptance of the asset within regulatory circles.

What’s Next for Grayscale’s XRP ETF?

As ProShares takes the lead with its “Short XRP ETF,” all eyes are on Grayscale to see when its own XRP ETF proposal will gain approval. If Grayscale’s ETF is approved, it would provide investors with a regulated, accessible way to gain exposure to XRP, further cementing the cryptocurrency’s position in the financial ecosystem. For Grayscale, the approval of their XRP ETF could be a game-changer, particularly as they have already found success with other crypto ETFs, including the Bitcoin and Ethereum products.

The approval of Grayscale’s XRP ETF could also pave the way for other financial institutions and investment firms to follow suit, helping to legitimize XRP further and expand its presence in both the traditional and decentralized finance (DeFi) sectors. With continued interest from institutional investors and a more favorable regulatory environment, XRP could see significant growth in the coming months and years.

Conclusion: A Promising Future for XRP in Traditional Finance

XRP’s future looks promising as it continues to build momentum within both the cryptocurrency and traditional financial sectors. While regulatory hurdles remain a key consideration, the growing interest in XRP-based ETFs and the potential settlement between Ripple and the SEC indicate that the cryptocurrency is poised for further integration into the financial mainstream. As Grayscale’s XRP ETF proposal awaits approval, investors are eager to see if this will be the catalyst for a new chapter in XRP’s journey—one that could lead to broader acceptance, increased legitimacy, and further institutional adoption in the years to come. With XRP’s place in the financial landscape becoming more solidified, the countdown to the next major development has already begun.