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What Is a Spot XRP ETF?
A spot XRP ETF is a traditional exchange-traded fund that physically owns real XRP tokens and lists shares on major U.S. stock exchanges such as the NYSE, Nasdaq, and Cboe BZX. When you purchase one share of the ETF, you are effectively gaining exposure to the price of XRP without ever needing to set up a crypto wallet, manage private keys, or worry about exchange security in the same way as direct ownership.
The fund holds the actual XRP in institutional-grade cold storage, primarily with Coinbase Custody, and calculates its daily net asset value (NAV) using independent pricing sources like the CME CF XRP-Dollar Reference Rate. The share price tracks XRP’s market price closely, minus a small annual management fee that ranges from 0.19% to 0.75% depending on the issuer.
The Full Regulatory Journey (2020–2025)
2020–2023: SEC Lawsuit and Partial Victory
The road to XRP ETFs began with the SEC lawsuit filed in December 2020, which labeled XRP an unregistered security and caused most U.S. exchanges to delist it. A major breakthrough came in July 2023 when Judge Analisa Torres ruled that programmatic sales on exchanges do not constitute securities offerings.
August 2025: Final Settlement and Non-Security Confirmation
After lengthy negotiations, the case reached its conclusion on August 7, 2025: Ripple paid a $125 million civil penalty, both parties dropped all appeals, and the court made the non-security ruling permanent for secondary-market sales.
September 2025: New SEC Fast-Track Standards Introduced
Three weeks after the August 7 settlement, the SEC introduced new generic listing standards for commodity-based cryptocurrency ETPs. This fast-track framework allows qualifying filings to become effective automatically after 20 days via S-1 amendments, removing the years-long individual review process that delayed Bitcoin and Ethereum spot ETFs.
Complete XRP ETF List – All Live and Upcoming U.S. Spot Products
(as of November 21, 2025)
| Fund & Subtitle | Ticker | Launch Date | Exchange | Fee | Key Highlights |
|---|---|---|---|---|---|
| REX-Osprey XRP ETF First to Market |
XRPR | September 18, 2025 | Cboe BZX | 0.75% | The very first U.S. spot XRP ETF ~$100 million AUM as of October 2025 |
| Canary Capital XRP ETF Record-Breaking Debut |
XRPC | November 13, 2025 | Nasdaq | 0.50% | Biggest single-day ETF debut worldwide in 2025 ($59M volume) ~$250 million AUM |
| Amplify XRP 3% Monthly Premium Income ETF Income-Focused |
XRPM | November 18, 2025 | Cboe BZX | 0.75% | Covered-call strategy Targets ~3% monthly payout (~36% annualized in flat markets) |
| Franklin Templeton XRP ETF Lowest Fee Leader |
EZRP | November 18, 2025 | Cboe BZX | 0.19% (waived until $1B AUM) | Cheapest base fee in the spot-crypto ETF space Projected opening AUM: $150–250 million |
| Bitwise XRP ETF Single-Letter Ticker |
XRP | November 20, 2025 | NYSE | 0.34% (waived on first $500M) | Secured the ultra-rare single-letter ticker “XRP” Seeded with 1.11 million XRP (~$2.27 million) |
Upcoming Filings
Additional filings from Grayscale, 21Shares, ProShares, WisdomTree, and others remain in the final review stage, with most analysts assigning 95%+ approval probability before the end of Q1 2026, subject to ongoing SEC monitoring.
Recent XRP ETF Developments & Key Milestones
November has delivered a constant stream of headline-making events via auto-effective S-1 filings under new SEC standards. Here's a quick roundup:
- Canary Capital sets global 2025 record with $59M first-day volume: The XRPC launch on November 13 marked one of the biggest ETF debuts of the year, drawing $245–250M in inflows.
- Bitwise secures ultra-rare single-letter ticker “XRP” on NYSE: This milestone highlights institutional confidence, with seeding and fee waivers positioning it for growth.
- Franklin Templeton launches lowest base fee (0.19%) in spot crypto ETF history: The EZRP's waiver until $1B AUM supports fee competition, backed by $1.5T in firm assets.
- Over 80 million XRP transferred to Coinbase Custody in first half of November: On-chain data confirms institutional inflows, boosting liquidity ahead of more launches.
Ripple CEO Brad Garlinghouse noted the momentum with a post on X about the "turkey trot"—a reference to the pre-Thanksgiving timing of these launches.
How Creation and Redemption Improves XRP Liquidity
The creation/redemption mechanism is the direct link between ETF flows and the underlying market. When investor demand pushes an ETF above its NAV, authorized participants purchase XRP on the open market, deliver it to the custodian, and receive newly created ETF shares in return. The opposite occurs during redemptions. This arbitrage process keeps the ETF price tightly aligned with XRP’s spot price and typically narrows bid-ask spreads while reducing long-term volatility. Data since September shows XRP’s 30-day realized volatility has declined by ~28%.
Advantages of Investing in XRP ETFs
XRP ETFs simplify crypto exposure for traditional investors. Here's a breakdown of the key benefits:
- IRA & Retirement Account Compatibility: Fully eligible for IRAs, 401(k)s, and brokerage accounts, enabling tax-advantaged growth without direct crypto handling.
- Full SEC Regulation and Daily Audits: Daily audits and transparency under SEC rules enhance trust and protect against fraud, unlike unregulated trading.
- Institutional-Grade Custody & Reduced Hacking Risk: Institutional custodians minimize hacking risks compared to personal wallets.
- Monthly Income Option (XRPM): Covered-call ETFs like XRPM target 3% monthly yields (36% annualized), offsetting volatility with steady payouts.
- Seamless Brokerage Access & High Liquidity: Trade via brokers like Fidelity—no wallets needed—with improved market depth reducing spreads.
- Potential Tax Deferral in Qualified Accounts: Potential deferral of gains in qualified accounts, preserving more returns than direct holdings.
Risks of Investing in XRP ETFs
ETFs mitigate some crypto issues but retain core uncertainties. Key risks include:
- Annual Management Fees (0.19–0.75%): Fees like EZRP at 0.19% or XRPM at 0.75% erode returns over time.
- No Airdrops, Staking, or DeFi Access: Miss XRP Ledger rewards, staking, or DeFi yields available to direct holders.
- Ongoing Price Volatility: XRP swings (e.g., 5–15% weekly) directly affect ETF values, amplified by market events.
- Covered-Call Strategies Cap Upside in Bull Markets: Income ETFs like XRPM may underperform in bull runs due to option sales limiting gains.
- Possible Tracking Error & Early Liquidity Premiums: Prices may deviate from XRP spot; early funds face wider spreads.
- Regulatory Uncertainty Remains: Post-2025 SEC clarity, future changes could impact XRP status or ETF viability.
XRP ETFs vs. Bitcoin & Ethereum ETFs (Quick Comparison)
| Feature | XRP ETFs (2025) | Bitcoin ETFs (2024) | Ethereum ETFs (2024) |
|---|---|---|---|
| First U.S. Launch | September–November 2025 | January 2024 | May–July 2024 |
| Approval Path | Auto-effective S-1 (fast-track) | Full 19b-4 + S-1 | Full 19b-4 + S-1 |
| Total Inflows So Far | ~$300M (early combined) | >$65 billion | ~$15 billion |
| Typical Fee Range | 0.19% – 0.75% | 0.20% – 0.90% | 0.19% – 0.25% |
| Main Use Case | Cross-border payments | Digital gold / store of value | Smart contracts / DeFi |
| Custodian | Mostly Coinbase Custody | Coinbase, Gemini, BitGo | Same as BTC |
| Income Option | Yes (e.g., XRPM covered-call) | Rare | Rare |
XRP ETFs vs. Buying XRP Directly on an Exchange
Investors have two main paths: regulated ETFs or flexible direct trading. Here's a side-by-side comparison:
| Feature | XRP ETFs | Direct Exchange Trading (e.g., Phemex) |
|---|---|---|
| Regulation | Full SEC oversight | State licensing + FinCEN |
| Trading Hours | U.S. market hours | 24/7 |
| Retirement Accounts | Yes | No |
| Fees | 0.19–0.75% annually | Usually zero spot fees |
| Leverage | No | Up to 100× |
| On-chain Benefits | None | Full (airdrops, DeFi, staking) |
Final Thoughts
Spot XRP ETFs began trading in 2025 after the SEC–Ripple settlement and the introduction of the auto-effective S-1 framework. These funds now offer U.S. investors a regulated way to gain exposure to XRP through traditional brokerage and retirement accounts. The creation/redemption mechanism has contributed to increased liquidity and a reduction in short-term volatility since the first launches.
Investors can now choose between:
- XRP ETFs (stock-market hours, SEC oversight, retirement-account eligible)
- Direct XRP trading on exchanges (24/7 access, no management fees, full on-chain functionality)
Both options are fully legal and available, allowing each investor to select the approach that best matches their preferences and goals. Past performance is not indicative of future results; consult a financial advisor.
Frequently Asked Questions
Are XRP ETFs Safe?
Yes—they employ the same custodians, insurance, and daily auditing standards as Bitcoin ETFs managing over $100 billion.
Do XRP ETFs Pay Airdrops or Staking Rewards?
No. Only XRP held in a personal wallet receives on-chain benefits.
Can I Day-Trade XRP ETFs?
Yes—intraday trading functions exactly like any other stock during regular market hours.
