XRP Ledger’s Dual Utility Could Make It a Breakout ETF Play, Experts Argue

NEW YORK – XRP Ledger’s ability to support real-world value transfer and payments from a single platform could give it a structural advantage in the growing crypto ETF market, according to Bitnomial founder and CEO Luke Hoersten.

“What I think is unique about XRP and RLUSD is that you have a single ledger that drives a two-point strategy, one is wealth storage and transfer in XRP, and the other is in RLUSD, which is payment,” Hoersten said at Ripple’s Swell conference in New York on Tuesday. “Having that be in a single book with a single strategy, to me, is what makes the ecosystem unique.”

The comments came during a panel discussion with Bitwise CEO Hunter Horsley, Canary Capital CEO Steven McClurg and Bloomberg Intelligence senior ETF analyst Eric Balchunas. The group discussed what a place XRP ETF could be, and why they think it could surpass past crypto ETF launches.

McClurg explained how the new SEC rules, combined with existing futures activity, now allow ETF issuers to file what’s called a “no-delay amendment” for assets like XRP.

“So, for example, we introduced that for Litecoin and HBAR, you know, several weeks ago, both of which went live last week,” McClurg said. “And then we introduced an XRP ETF with no delay amendment, essentially, 20 days before November 13th.”

This means that an XRP ETF spot could go live as early as next week.

Bitwise, which recently launched a Solana staking ETF, is also in the running. That fund, BSOL, brought in $500 million in its first week — one of the strongest performances of any ETF in 2024. Horsley said he believes XRP could be next.

“I think XRP, and we know from our customer base, is one of the highest conviction assets among investors, so I think it’s going to do fabulously well, and we’re going to bring it to market in all those types of investors to make sure it has its best to make a dent,” he said.

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, echoed this view. He compared the ETF launch race to a “Cannonball Run”, and said that XRP has already proven its popularity in the past of the crypto fund.

“It wouldn’t surprise me if XRP ends up being the breakout ETF of the next cycle,” Balchunas said.

However, the panel cautioned that an ETF alone does not guarantee price growth. But as new instruments like in-kind creation, settled physical futures and tighter spreads come into play, XRP may be better positioned than most to benefit from a broader shift from crypto to regulated finance.