Ripple’s XRP is quickly becoming a top contender in the rapidly evolving race toward crypto ETF approval in the United States. Recent developments suggest the altcoin may be closer than ever to securing regulatory support for a spot ETF product, potentially ahead of other major digital assets like Solana and Litecoin. A key milestone in this journey is the upcoming introduce of a futures-based XRP ETF by ProShares, which has updated its application to include both futures contracts and swap agreements. This fund is eyeing an official debut by the end of April, marking what would be the second XRP futures ETF to introduce in the U.S., following Teucrium's earlier product.

This growing acceptance of XRP-based ETFs is being seen by analysts as a positive precursor to spot ETF approval. According to Nate Geraci, president of the ETF Store, the regulatory pattern observed with Bitcoin and Ethereum ETFs—where futures-based products received approval before spot funds—could repeat itself with XRP. Geraci expressed strong confidence that the SEC would move forward with a spot ETF for XRP, possibly sooner rather than later, citing the presence of an already-live 2x leveraged XRP ETF as a sign regulators are becoming increasingly comfortable with the asset.

What sets XRP apart from its competitors isn’t just the momentum behind ProShares’ futures product—it’s the scale of institutional interest and market liquidity supporting it. According to a report from crypto research firm Kaiko, XRP leads the pack with ten active spot ETF applications submitted to the SEC. In comparison, Solana has only five. This level of engagement from financial institutions shows just how serious the market is about bringing an XRP ETF to life.

Additionally, XRP’s liquidity metrics are proving to be a decisive advantage. Kaiko highlighted that XRP, along with Solana, has the highest average 1% market depth across all vetted exchanges—an important measure of how well an asset can absorb large trades without significant price fluctuations. XRP’s market depth has surged since the end of 2024, not only surpassing Solana but also doubling that of Cardano. In previous years, the SEC under different leadership placed a strong emphasis on liquidity as a prerequisite for ETF approval, and if the current commission maintains that stance, XRP could be perfectly positioned to meet the criteria.

Speculation surrounding the approval of a spot XRP ETF is growing across the crypto ecosystem. Polymarket, a popular prediction platform, currently gives a 75% probability that a U.S.-based spot XRP ETF will be approved before the end of 2025. This level of market confidence is fueling optimism among traders and investors, many of whom see XRP as the next logical step in expanding crypto ETFs beyond Bitcoin and Ethereum. The approval of spot products has long been seen as the ultimate stamp of legitimacy for crypto assets, potentially opening the door to large-scale institutional investment.

However, not everything is moving in XRP’s favor. On-chain data suggests that large holders—commonly referred to as whales—have been pulling back their exposure since February. Kaiko’s Whale vs. Retail Delta indicator, which measures the difference in activity between large and small investors, has turned notably negative in recent months. Historically, periods of strong whale accumulation have been associated with bullish price momentum, such as during the surges seen in November and early January. Without renewed buying interest from these major players, XRP’s price may remain under pressure in the near term.

From a technical standpoint, XRP’s daily chart shows the token caught between key moving averages and trendline support. The asset is currently fluctuating between $2.00 and $2.20, with resistance forming at the 50-day exponential moving average and support near the 200-day moving average. This consolidation suggests XRP could continue trading in a tight range unless new buying pressure enters the market. Weak demand in the short term could even result in a drop below the $2.00 mark if support levels fail to hold.

Despite this cautious near-term outlook, the long-term narrative for XRP remains compelling. If ProShares successfully introduces its futures-based ETF at the end of April and if the SEC follows the regulatory precedent it set with Bitcoin and Ethereum, then a spot XRP ETF could realistically be approved later this year. With more issuers lined up than any other altcoin and clear improvements in market depth and liquidity, XRP appears better positioned than its rivals to gain approval.

The crypto market continues to evolve, and the next phase of ETF development could bring transformative change to assets beyond Bitcoin and Ethereum. XRP’s lead in issuer interest, its favorable liquidity profile, and the imminent introduction of its futures ETFs are all signaling that it might just be the next digital asset to cross the ETF finish line. While price action remains cautious for now, a green light from the SEC could fuel a renewed rally and a significant shift in the altcoin's market status.