The prospect of XRP exchange-traded funds (ETFs) has ignited a significant debate among analysts regarding potential investor demand and approval likelihood. Eric Balchunas, a senior ETF analyst at Bloomberg, clarified that while demand for XRP ETFs might be relatively lower than for Bitcoin ETFs due to the asset's proximity to Bitcoin, Bloomberg analysts never suggested there would be no demand at all. This sentiment is echoed by NovaDius Wealth Management President Nate Geraci, an expert ETF watcher, who contends that the market is severely underestimating the demand for spot XRP funds, drawing parallels to the initial skepticism surrounding Bitcoin and Ethereum ETFs that later saw billions in inflows.

Evidence supporting robust demand for XRP-related products comes from the derivatives market. CME Group's regulated XRP futures notably surpassed $1 billion in open interest in less than four months, setting a record for the fastest contract to achieve this milestone. Additionally, futures-based XRP ETFs have quickly garnered over $800 million. Canary Capital CEO Steven McClurg further bolstered the bullish case, predicting that XRP ETFs could attract as much as $5 billion in inflows during their first month, asserting that XRP is the second most recognized cryptocurrency within Wall Street circles, after Bitcoin.

Despite these optimistic projections, skepticism persists. Cryptocurrency analyst Adriano Feria, for instance, predicts that the launch of spot XRP ETFs could mark "the beginning of the end" for the Ripple-linked token, believing that these products will ultimately reveal a lack of genuine institutional demand. Adding to concerns, major players like BlackRock have reportedly ruled out filing for an XRP ETF, and Fidelity has also refrained despite filing for a Solana-based one. These decisions are seen as potentially worrying signs, given their significant influence in the Bitcoin and Ethereum ETF markets.

The U.S. regulatory landscape for XRP ETFs is actively evolving. The Securities and Exchange Commission (SEC) has repeatedly delayed decisions on various spot XRP ETF proposals, with the most recent postponement on August 18. However, this is considered standard practice, and spot XRP ETFs are still overwhelmingly expected to be approved this year or in 2025. Bloomberg analysts previously assigned high odds for approval in 2025, a sentiment shared by Polymarket bettors who currently place the chance of approval at 82% to 86% this year. Currently, only leveraged or futures-based XRP ETFs, such as Teucrium 2x Long Daily XRP ETF and ProShares Ultra XRP ETF, are available in the U.S.

The SEC's table is reportedly overflowing with 92 crypto ETF filings, including seven for XRP, alongside eight for Solana. Prominent issuers like Franklin Templeton, Bitwise, 21Shares, and Grayscale are among those widely expected to receive spot XRP ETF approvals later this year. WisdomTree's XRP ETF decision was also pushed back. Adding an innovative dimension to the market, Amplify Investments has submitted a filing for an XRP ETF designed to generate income by selling options. This proposed fund will not directly hold XRP but will invest in other ETFs that track its spot price, selling call options typically 10% above the current price. This strategy allows investors to earn premiums, cushioning potential losses from sharp downturns, though it caps upside gains if XRP rises significantly. Fund managers continuing to file for these products suggests a clear expectation of eventual regulatory approval, which, if granted, would bring an end to the prolonged speculation surrounding XRP ETFs.