tl;dr
The XRP ETF Debate Heats Up: Demand, Doubts, and a $1 Billion Milestone
Eric Balchunas, Bloomberg’s senior ETF analyst, has set the record straight after his earlier comments about XRP ETF demand sparked a firestorm of debate. “We never said there was no demand for XRP,” he clarified, emphasizing...
The XRP ETF Debate Heats Up: Demand, Doubts, and a $1 Billion Milestone
Eric Balchunas, Bloomberg’s senior ETF analyst, has set the record straight after his earlier comments about XRP ETF demand sparked a firestorm of debate. “We never said there was no demand for XRP,” he clarified, emphasizing that the issue lies in the relative scale of interest compared to Bitcoin. “The further you get from Bitcoin, the fewer assets there will be,” he explained, a sentiment that has long shaped the crypto market’s hierarchy.
Yet, the data tells a different story. Just months after the CME Group launched regulated XRP futures, the product shattered records, amassing over $1 billion in open interest in under four months—the fastest any contract has ever achieved. Meanwhile, futures-based XRP ETFs have already surpassed $800 million in assets, a figure that has caught the attention of industry insiders like Nate Geraci, president of NovaDius Wealth Management. “The demand for XRP ETFs is being underestimated,” Geraci argued, pointing to the rapid adoption of XRP futures as a sign of growing institutional interest.
Balchunas’ caution isn’t without merit. Bitcoin ETFs have dominated headlines and capital flows, with their approval in 2024 acting as a catalyst for a $1 trillion surge in crypto-related assets. XRP, while a major player in the blockchain space, lacks the same level of mainstream recognition and regulatory clarity. Still, the CME’s success with XRP futures suggests that demand is far from negligible.
Bloomberg analysts remain optimistic, pegging the odds of XRP ETF approval in 2025 at “extremely high.” But the path to approval is fraught with challenges, from regulatory scrutiny to the need for robust market infrastructure. As the debate rages on, one thing is clear: the XRP ETF story is far from over, and the $1 billion milestone may be just the beginning.
What do you think? Is XRP’s demand finally catching up to its potential, or are the hurdles too great to overcome?