XRP is quietly becoming a focus for institutional investors in 2025. Futures on the CME Group recently crossed $1 billion in open interest, a record for the token. Across the broader crypto futures market, total notional open interest has passed $30 billion, with Ethereum and Solana also reaching $1 billion each. XRP is the fastest-growing of the group, reflecting strong activity from major players.
The resolution of the Ripple versus SEC case cleared a big hurdle. Following the settlement, several fund managers, including Canary, Franklin, 21Shares, WisdomTree, and Bitwise, filed amended S-1 forms for spot XRP ETFs.
Of course, there’s one question on everyone’s mind: how will these ETFs manage liquidity when Ripple still holds a significant portion of XRP in escrow?
Crypto analyst Lennaert Snyder explained it and said that ETF issuers do not need to rely on Ripple’s holdings directly. Liquidity is available across multiple exchanges and over-the-counter desks, and as long as trading volumes remain strong, the market can support institutional demand smoothly.
“In my view, the solution is that secondary market liquidity are sufficient to support institutional demand without excessive slippage,” he said in an interview with Coinpedia.
Will an XRP ETF Push Prices Skyward?
If history is any guide, don’t expect fireworks on day one. “Crypto ETFs usually follow the old rule: buy the rumor, sell the news,” says Snyder. Instead of an instant pump, XRP’s price may climb gradually, supported by steady inflows from institutional investors. The thrill comes not from a single surge, but from sustained participation that could make XRP a long-term favorite in portfolios.
“Similar to BTC and ETH, I’d expect the real impact to come later. Sustained and steady inflows over time are what could drive price appreciation for XRP,” he concluded.
