Nasdaq has officially submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the CoinShares XRP ETF Trust.
The filing, submitted on February 10, represents a significant move toward institutional adoption of XRP, a digital asset often associated with Ripple’s payment network.
XRP ETF Proposal Signals Institutional Interest
The proposal for an XRP ETF follows a wave of similar filings for cryptocurrency-based exchange-traded products. If approved, the CoinShares XRP ETF would provide institutional and retail investors with a regulated way to gain exposure to XRP without directly holding the asset.
This filing is noteworthy because the SEC has previously refused to acknowledge Solana ETF filings, making its decision on the XRP ETF closely watched by market participants.
The acknowledgment of Grayscale’s Solana ETF application earlier this month was considered a shift in regulatory stance, potentially signaling a greater willingness to consider new crypto-based ETFs.
XRP Market Activity and Institutional Trends
The announcement comes amid significant volatility in the XRP market. XRP experienced a 25.7% correction over the seven days ending on February 6, dropping to $2.30 before rebounding to $2.50 on February 7. Despite the recovery, professional traders have significantly reduced their leveraged positions, as reflected in the 37% decline in total XRP futures open interest since its peak on January 15.
Institutional interest remains a critical factor in XRP’s market performance. Futures data indicates that the annualized premium for XRP 3-month futures has returned to the bullish 10% level, suggesting that long-term investors remain optimistic despite recent price declines.
XRP Retail Sentiment and Market Speculation
Unlike Bitcoin and Ethereum, XRP remains heavily influenced by retail traders, with perpetual contract open interest exceeding $2.5 billion across major platforms like Binance, Bybit, and Bitget, according to coinglass.
However, funding rates for perpetual contracts have dropped to 0.2% per month, signaling weakening bullish sentiment among retail investors.
Additionally, speculative rumors about XRP’s integration into traditional finance and government initiatives have fueled market discussions, but no concrete evidence supports these claims.
While a more crypto-friendly U.S. administration could improve XRP’s regulatory outlook, it does not necessarily translate into increased adoption or usage within the financial sector.
