XRP ETF demand is expected to surge, driven by XRP futures’ record $1B open interest on CME Group.
The XRP ETF debate has acquired substantial momentum in the wake of the official resolution of the Ripple vs SEC lawsuit. Nate Geraci, the President of NovaDius Wealth Management and the ETF Prime Podcast presenter, believes there will be an organic demand for spot XRP ETFs.
An expert anticipates demand for the XRP ETFs
Geraci’s opinion in an X post was that the demand for spot XRP ETFs is underestimated, suggesting they could experience substantial demand upon a prospective launch. This occurred as he referenced the CME Group’s announcement that the XRP futures contracts have exceeded $1 billion in open interest, a feat that has never been achieved faster than in just over three months.
The market expert also observed that over $800 million in XRP ETFs are based on futures. Consequently, he anticipates that the demand for these futures products will result in a substantial demand for the spot products if they are ultimately approved by the SEC.
The U.S. Securities and Exchange Commission (SEC) has received applications from Bitwise, Canary Capital, WisdomTree, 21Shares, CoinShares, Franklin Templeton, and Grayscale to provide spot XRP exchange-traded funds (ETFs). The regulatory agency has extended the assessment period for the WisdomTree XRP ETF until October 24, 2025, as CoinGape reported.
The SEC had already extended the review period for other funds, except Franklin Templeton, whose deadline is not until next month. The Commission must approve or disapprove the proposed rule change by October, the final deadline for these funds.
Experts Are Placing Bets on The SEC’s Approval Of These Funds
Experts are anticipating the agency’s imminent approval of spot XRP ETFs, as evidenced by its track record. Last year, the U.S. SEC was compelled by the court to approve numerous spot Ethereum ETFs, as it had previously approved comparable futures products.
Additionally, investors are anticipating the approval of spot XRP ETFs due to the SEC’s pro-crypto posture under the current administration. Several fund managers submitted amended S-1 applications to the SEC last week for their respective spot XRP ETFs.
Geraci characterized that action as an exceptionally favorable indicator. James Seyffart, a Bloomberg analyst, also expressed his belief that this was a positive development, as it indicates that the issuers have received feedback from the SEC.
The XRP Army is expected to contribute
John Deaton, a pro-crypto counsel, anticipates that the XRP ETFs will experience substantial demand, similar to Geraci. He stated that he made this prediction in the same way that he predicted that Gemini’s XRP card would be the most popular credit card on the crypto exchange.
Deaton is certain that the XRP Army can generate substantial inflows into the ETFs. Intriguingly, he believes that the Gemini App has recently outperformed Coinbase in downloads, thanks to the support of XRP holders.
The legal expert observed that 75,000 XRP holders from 143 countries worldwide participated as amici curiae in the Ripple SEC litigation, a remarkable development that had never been seen before.