XRP is most likely to become the next spot ETF to be approved

Market research firm Kaiko Research released a report on April 14 stating that XRP, a cryptocurrency issued by Ripple, is currently the strongest candidate for approval as a spot ETF (Exchange Traded Fund) in the United States.

At present, many asset management companies including Bitwise, Grayscale, and VanEck have submitted relevant ETF applications, and multiple approval deadlines are approaching.

Regarding XRP, there are currently 10 spot ETF applications under review, far exceeding other mainstream altcoins, such as Solana (SOL)'s 5 applications.

The background of XRP's lead this time is the change in the attitude of regulators and the change in market structure.

The U.S. Securities and Exchange Commission (SEC) has recently taken a more positive stance toward crypto-related ETFs than in the past. It is worth noting that the SEC’s deadline for responding to Grayscale’s XRP spot ETF application is May 22.

In addition, Paul Atkins’ appointment as the new chairman of the SEC may also bring a more friendly regulatory environment for crypto assets.

Kaiko’s report pointed out that XRP has higher market liquidity than other altcoins.

Among centralized exchanges, XRP’s average 1% market depth is the highest among all major altcoins, which is crucial for establishing efficient financial derivatives and may also be a consideration in SEC approval.

In addition, the launch of the XRP 2x Leveraged ETF (XXRP) by the US asset management company Teucrium has further promoted the development of the XRP market. Although XXRP is not a spot ETF, its success shows that XRP has the potential to be an underlying asset for financial derivatives, which may also affect the SEC's evaluation of the XRP spot ETF.

The change of SEC Chairman from Gary Gensler to Paul Atkins is seen as likely to bring a more relaxed regulatory environment for crypto ETFs. At the same time, the Trump administration's support for cryptocurrencies has also led to an increase in the number of ETF applications.

Although Solana also has good market depth compared to XRP, the proportion of trading volume in the United States is currently declining.

Other altcoins such as Litecoin (LTC) and Dogecoin (DOGE) have far fewer ETF applications and liquidity than XRP.

Analysts believe that XRP’s favorable market environment and changing regulatory trends will greatly increase its chances of obtaining spot ETF approval.

According to JP Morgan's forecast, once the XRP spot ETF is approved, it is expected to attract up to $8 billion in inflows in its first year.