Interest in XRP exchange traded funds is growing quickly after another product received approval. Cboe has approved a 21Shares XRP ETF under the XR ticker, adding to the list of funds offering exposure to the token.
The pace of inflows has surprised even industry leaders. Ripple CEO Brad Garlinghouse recently celebrated that XRP ETFs crossed $1 billion in assets in about 17 days, a much faster start than many expected.
Market analysts say this trend could accelerate.
$10 Billion Target Within a Year
Crypto analyst Mickle said that if current inflow rates continue, XRP ETFs could hold as much as $10 billion worth of XRP within a year.
He said ETFs are removing friction for investors who previously avoided crypto exchanges. Many investors did not buy XRP earlier simply because access was complicated or outside their compliance rules.
ETFs change that by allowing investors to buy XRP exposure through regular brokerage accounts. Mickle said XRP today is very different from what early investors bought years ago.
“The XRP I bought in 2016 or 2017 is not the same XRP we have today,” he said. “The network keeps getting more powerful. New features are being added, and from an investment point of view, that matters.” He added that many investors overlook Ripple’s original vision for the XRP Ledger.
“If you go back and watch interviews with Chris Larsen from as early as 2013, he was already talking about issuing assets on the ledger and using XRP as liquidity,” Mickle said. “That idea has been there from the start.”
New Liquidity Pipeline for XRP
The analyst described XRP ETFs as a new liquidity pipeline rather than a short term trade. This steady institutional demand could reduce reliance on retail trading cycles and add depth to the XRP market.
Over time, that demand may support price stability and higher trading volumes. As these markets develop, Mickle said the role of the XRP Ledger is likely to expand.
“You’re going to see more infrastructure move onto the XRP Ledger,” he said. “That positions XRP as underlying liquidity across different financial uses, not just money moving back and forth.”
Institutions Drive the Next Phase
Institutions have strong incentives to promote ETF products because they fit within compliance, marketing, and advisory frameworks.
This makes XRP ETFs easier to recommend and distribute than direct crypto holdings. Analysts see this as a major positive catalyst for long term adoption.
Market Cycles Are Changing
Recent price swings following U.S. rate cuts show that crypto still reacts to macro news. However, the analyst argues the market is moving away from strict four year boom and bust cycles.
Instead, performance is becoming more driven by fundamentals such as regulation, infrastructure, and institutional use cases.
XRP has already outperformed many altcoins over the past 18 months, suggesting capital is becoming more selective.
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