The debate over a possible spot ETF backed by XRP has gained traction after assessing the “double utility” of the XRP Ledger (XRPL): efficient payments and asset tokenization. Experts estimate that, if approved, the initiative could attract between $3.5 billion and $15 billion in inflows in the first six to twelve months, affecting fund managers, institutional custodians, product teams and compliance departments.
The XRPL combines infrastructure for fast transfers and low costs with tools to issue and manage on‑chain assets. Its roadmap and features —including Multi‑Purpose Tokens (MPTs) and escrow mechanisms— have been cited as drivers for the tokenization of RWAs (real‑world assets). MPTs is a standard that allows creating tokens with multiple uses on the same chain, for example stablecoins and fractionalized assets.
The recent regulatory advance, signaled by the resolution of the litigation between the SEC and Ripple that clarified the status of XRP in certain contexts, has removed a significant barrier to possible approvals in the U.S. That clarity, according to cited analysts, has reconfigured the risk calculus for institutions that previously ruled out direct exposure to XRP.
One operational advantage noted by experts is the combination of liquidity and functionality: the XRPL would not only serve as a speculative asset but also as a settlement layer for tokenized assets, which could improve NAV efficiency and flow management in an ETF‑type vehicle. “XRP’s ability to support payments and asset storage on a single ledger gives it a structural advantage as an ETF asset,” said Luke Hoersten, CEO of Bitnomial.
Context and impact of the XRP Ledger
The potential approval of an ETF on XRP would have several practical consequences and associated risks that could reshape institutional engagement and product design.
With greater institutional interest in indirect exposure via an ETF, facilitated by custody and KYC/AML processes. There´s an estimated inflows between $3.5 billion and $15 billion could improve market depth and reduce slippage.
With possible filings and regulatory decisions on spot ETFs could materialize in months; the evolution of those approvals will be decisive to validate the flow projections and adjust custody, liquidity and compliance parameters for interested managers.
