2 Factors That Position XRP as Leading Candidate for Next U.S. Spot ETF

XRP could become the next major cryptocurrency to receive a spot ETF approval in the U.S., thanks to its superior market liquidity and recent leveraged ETF launch, according to analysts at Kaiko, a crypto research and data platform.

Liquidity Gives XRP a Market Edge

Kaiko‘s latest report highlights XRP’s deep market liquidity as a key driver for its potential regulatory breakthrough. Among altcoins, XRP currently boasts the highest 1% market depth on major centralized exchanges — meaning there are significant buy and sell orders near the current price, which minimizes slippage and supports smoother, more efficient trading.

“A highly liquid spot market is important for creating efficient structured products, and the former SEC leadership was highly sensitive to this,” Kaikos analysts noted in their Monday report.

XRP‘s liquidity surged notably toward the end of 2024, surpassing that of Solana (SOL) and doubling that of Cardano (ADA). The momentum was fueled by growing speculation that Donald Trump’s return to the presidency — coupled with pro-crypto sentiment — could fast-track the end of the SECs legal dispute with Ripple, which had long hindered the approval of an XRP spot ETF.

XRP Tops ETF Filing Activity

The altcoin is also leading the charge in active ETF filings. According to Kaiko data, the altcoin has 10 spot ETF applications pending, more than any other altcoin. Solana follows with five filings, while Litecoin (LTC) and Dogecoin (DOGE) each have three.

The wave of applications comes amid a shakeup in the SECs leadership. Industry-friendly Paul Atkins is expected to replace Gary Gensler as SEC Chair after being confirmed by the Senate last week. His appointment is widely expected to usher in a more crypto-positive regulatory approach, prompting asset managers like Bitwise, Grayscale, and VanEck to increase their ETF submissions.

Teucriums Leveraged XRP ETF a Key Milestone

Kaiko analysts also highlighted the launch of Teucriums leveraged XRP ETF — the XXRP — as another sign of XRPs growing institutional traction. XXRP, which seeks to deliver 2x the daily return of XRP via futures and swap contracts, became the first XRP ETF to launch in the U.S. last week. However, the SEC has yet to greenlight a spot version.

While the leveraged product is not a direct replacement for a spot ETF, its approval by regulators indicates a softening stance toward XRP-related financial products and adds pressure on the SEC to finalize a spot listing.