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The conversation around exchange-traded funds (ETFs) linked to XRP is heating up as institutional investors show unprecedented demand for exposure to the cryptocurrency. Wealth manager Nate Geraci, a long-time observer of the ETF market, believes that the appetite for spot XRP ETFs could be far stronger than many in the market are currently predicting.
This perspective comes at a time when futures-based XRP investment products are experiencing rapid growth, while U.S. regulators continue to delay decisions on multiple spot applications.
CME XRP Futures Break $1 Billion in Open Interest
One of the strongest signals of rising institutional interest is the milestone recently achieved on the CME Group platform. XRP futures contracts on CME have surpassed $1 billion in open interest just a little over three months after their introduction.
This is a historic achievement, making XRP the fastest cryptocurrency to reach the billion-dollar OI threshold on CME’s platform, outpacing even Ethereum and Bitcoin during their early stages. Geraci pointed out that this momentum highlights the scale of demand among institutional investors who prefer regulated trading venues.
He added that if futures products are seeing this level of success, the market may be vastly underestimating how strong the demand could be for spot ETFs once approved.
Futures-Based XRP ETFs Surpass $800 Million
Alongside CME’s record-setting milestone, futures-based XRP ETFs are also gaining traction. Products such as Teucrium’s 2x Long Daily XRP ETF (XXRP) and Volatility Shares’ XRPI 1x Futures ETF have fueled combined assets past $800 million.
Bloomberg ETF analyst Eric Balchunas previously highlighted XXRP’s remarkable trajectory, which began with just $5 million in trading volume at its April debut. By May, the fund had scaled to $35 million in daily trading volume and crossed $120 million in assets under management. This rapid growth laid the groundwork for XRPI’s strong entry into the market.
These inflows demonstrate that institutional and retail traders alike are actively looking for exposure to XRP through regulated ETF products, even before any spot fund receives regulatory approval.
SEC Faces Pressure on Spot ETF Decisions
The U.S. Securities and Exchange Commission (SEC) is currently reviewing more than 10 spot XRP ETF applications from major asset managers including Grayscale, 21Shares, and Franklin Templeton. While the SEC has delayed multiple filings, final deadlines are expected in Q4 2025.
The regulator’s cautious stance is not unexpected, especially given the long-running legal battle with Ripple Labs, which concluded earlier this year. However, the clear institutional demand reflected in both CME futures and leveraged ETFs has increased pressure on the SEC to move faster.
BlackRock Speculation Gains Strength
Fueling speculation further, Nate Geraci suggested that BlackRock—the world’s largest asset manager—may eventually file for a spot XRP ETF.
BlackRock already dominates the digital asset ETF market with its Bitcoin and Ethereum products, and Geraci believes it would be “illogical” for the firm to overlook XRP if demand continues its upward trend.
He noted that BlackRock may choose to wait until regulatory clarity improves, only to “swoop in at the last minute” and capture early market share.
XRP Community Responds
Geraci’s comments have not gone unnoticed within the XRP community. Prominent figures such as attorney John Deaton, who played a key role during the SEC v. Ripple case, welcomed the observations.
Deaton reminded the community that he had previously forecasted strong Wall Street interest in XRP-linked investment products. He also drew parallels to the recent success of the Gemini XRP Card, which quickly became one of the most popular offerings on the platform.
Deaton further highlighted that more than 75,000 XRP holders across 143 countries had united during the Ripple lawsuit as amici, underscoring the global reach and dedication of the community.
Adding to this, Brad Kimes of Digital Perspectives argued that if products like the XRP card have already gained such traction, the approval of more than 10 ETF applications could have a dramatic influence on XRP’s price trajectory.
Outlook: Is the Market Underestimating Spot Demand?
The recent surge in futures-based products and CME trading activity paints a clear picture: institutional demand for XRP is real and accelerating. The SEC’s pending decisions in Q4 2025 will be pivotal in determining whether this demand can translate into spot market success.
If BlackRock or another heavyweight asset manager enters the fray, it could dramatically alter the competitive landscape and accelerate capital flows into XRP.
For now, XRP’s price action remains closely tied to regulatory updates. But if Geraci’s view proves accurate, the eventual approval of a spot XRP ETF could trigger a new wave of institutional adoption and reshape the cryptocurrency’s investment profile.
