- Odds of XRP ETF approval have surged after Ripple-SEC progress.
- Experts believe XRP ETF could perform better than Ethereum ETF.
- CEO Steven McClurg outlines three main reasons for this belief.
The possibility of a Ripple (XRP) exchange-traded fund (ETF) has been making headlines in the crypto world. On August 8, the odds of the U.S. Securities and Exchange Commission (SEC) approving an XRP ETF briefly jumped to nearly 90%, after the Ripple-SEC legal battle officially ended. Bloomberg analysts now predict that the approval odds are close to 95%.
If it gets approved, experts believe an XRP ETF could actually outperform the new Ethereum ETF. Canary Capital CEO Steven McClurg just laid out three clear reasons why:
1. XRP Has No Staking Disadvantage
Ethereum allows investors to earn a 2%–3% annual yield by staking their coins directly on exchanges or blockchain platforms. This means that crypto-savvy investors may see little reason to buy an ETH ETF, as holding ETH directly can generate extra income.
XRP, on the other hand, does not offer staking rewards, so buying an XRP ETF doesn’t come with any opportunity cost.
The other side. Ethereum’s staking yield is just one part of its story. Here’s our deep dive into the three tailwinds currently pushing ETH higher.
2. XRP Is a Clear Category Leader
McClurg explained that XRP has a dominant position in its niche: fast, low-cost cross-border payments. While Ethereum faces intense competition from other smart contract platforms like Solana, Cardano, and Avalanche, XRP has far fewer direct rivals in its primary use case.
Ripple has consistently upgraded its technology and maintained its leadership in the payments sector, which can help attract institutional investors looking for a clear market leader.
3. XRP Army: The Powerful and Loyal Community
XRP’s community is one of the most loyal and vocal in the crypto space. This large base of retail and institutional supporters could translate into strong ETF inflows right from launch. McClurg predicts that the XRP ETF could see as much as $5 billion in inflows in its first month, potentially surpassing the early performance of the ETH ETF.
“I absolutely believe that there’ll be an XRP ETF this year. I mean, I’ll never give it a 100% chance because anything can happen. I truly believe that it will be this year,” the CEO said.
So what’s the target? With the ETF hype building, the price is the big question. Here’s CoinEdition analysis of a bullish chart pattern eyeing an XRP $11 price target.
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