XRP ETF Mania Heats Up: CEO Foresees Dominance Over Ethereum ETFs in 2025

Wall Street's latest crypto obsession isn't Bitcoin or Ethereum—it's XRP. As ETF fever grips the market, one CEO's bold prediction is turning heads: XRP-based funds might just outpace their Ethereum counterparts.

Why the sudden hype? Three words: institutional adoption wave. While Ethereum ETFs languish in regulatory purgatory, XRP's legal clarity post-SEC case makes it a prime candidate for explosive growth. Traders are already positioning for what could be 2025's most lucrative crypto play.

The irony? After years of Wall Street dismissing XRP as 'not a real cryptocurrency,' bankers now can't wait to package it into neat little ETF wrappers—complete with their usual 2% management fees, of course.

TLDR

• The SEC has officially closed its case against Ripple which has boosted optimism for an XRP ETF.
• Prediction platform Polymarket now places the odds of XRP ETF approval in 2025 at 88%.
• Canary Capital CEO Steven McClurg believes an XRP ETF will launch this year.
• McClurg says the absence of staking makes XRP ETFs more attractive than Ethereum ETFs.
• XRP continues to dominate cross-border payments and settlement solutions in the financial sector.

Market expectations for an XRP ETF have surged after the SEC officially closed its case against Ripple. Prediction platform Polymarket now gives the ETF an 88% approval chance in 2025, compared to 53% last week. Canary Capital CEO Steven McClurg has stated he “absolutely” believes an XRP ETF will launch this year.

XRP ETF Could Outperform Ethereum ETFs

McClurg argued that ethereum ETFs face a yield disadvantage because Ethereum holders can stake for 2–3% returns. He noted XRP does not offer staking, so ETF buyers face no opportunity loss compared to direct ownership. “ETF investors in XRP are not missing out on any yield,” he said during a podcast with Paul Barron.

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He emphasized that the absence of staking enhances the attractiveness of an XRP ETF for both institutional and retail buyers. This structure could draw more capital from investors avoiding Ethereum ETFs due to staking yields elsewhere. Consequently, McClurg believes an XRP ETF could outperform Ethereum ETFs in early adoption.

Additionally, McClurg revealed ongoing discussions with the SEC to allow staking within ETF structures. He stated, “We’re all talking to the SEC to get staking allowed in ETFs.” If approved, this WOULD remove Ethereum ETFs’ current disadvantage while keeping XRP ETF demand strong.

XRP Is a Category Leader

According to McClurg, XRP remains dominant in cross-border payments and settlement solutions. He contrasted this with Ethereum, which faces competition in the bright contract space from multiple blockchain platforms. “XRP is the leader in more traditional financial services rails,” he said.

He also pointed out that XRP’s established infrastructure in financial services gives it an advantage with banks and payment providers. This position, he suggested, will drive institutional inflows once an XRP ETF launches. The Ripple network’s existing use cases reinforce its market-leading role.

Furthermore, McClurg stressed that the recent conclusion of the Ripple lawsuit accelerated the ETF momentum. He noted that even without the settlement, there was no legal reason to reject an XRP ETF. A previous court ruling already declared XRP not a security, supporting its eligibility.

Community and Demand

McClurg estimated that an XRP ETF could attract $5 billion in inflows during its first month. This projection, he claimed, could surpass Ethereum ETF launches in both speed and scale. “There’s going to be very strong demand for XRP,” he said.

He attributed this demand to the coin’s strong global community and active financial sector partnerships. With XRP futures already trading on CME and Coinbase, the asset is on track to meet new exchange listing criteria. NASDAQ, NYSE, and CBOE recently proposed standards for tokens with regulated U.S. futures trading for over six months.

McClurg expects multiple crypto ETFs, including XRP, Litecoin, and HBAR, to launch once these standards are applied. However, he predicted XRP will lead due to its proven utility and network adoption. “That’s exactly why we filed for this ETF a year ago,” he explained.