- Canary Capital CEO predicts strong institutional demand for XRP ETF products
- Settlement boosts Polymarket approval odds from 53% to 88% for 2025 launch
- New NASDAQ listing standards enable ETF approval through futures markets
Optimism around XRP ETF approval has intensified following the conclusion of the SEC vs. Ripple case, with prediction markets showing dramatic shifts in approval expectations.
According to Canary Capital CEO Steven McClurg, institutional demand trends and structural advantages suggest that XRP ETF products may perform better than Ethereum offerings.
McClurg highlighted the settlement’s impact on market sentiment, noting that Polymarket approval odds for 2025 have jumped from 53% to over 88% within a week. The CEO emphasized that even without the settlement, XRP ETF approval should proceed since a federal judge already ruled XRP is not a security.
Generic Listing Standards Create Clear Approval Pathway
New listing standards published by NASDAQ, NYSE, and CBOE provide a framework for ETF approval based on regulated US futures markets operating for over six months. XRP is expected to meet this criterion soon, with futures markets now active on CME and Coinbase following their 2025 launches.
McClurg projects that five to seven cryptocurrency ETFs could launch once the new standards take effect, including products for XRP, Litecoin, and HBAR. However, he views XRP as uniquely positioned due to its leadership role in financial services infrastructure.
The CEO’s background in traditional financial services provides insight into institutional preferences for XRP’s payment rails and settlement technology. This institutional familiarity could drive stronger demand compared to other cryptocurrency ETF products.
Three Factors Support XRP ETF Outperformance
McClurg outlined specific reasons why XRP ETFs might exceed Ethereum product performance. First, XRP lacks staking opportunities, eliminating the opportunity cost that makes Ethereum ETFs less attractive to crypto-native investors who can earn 2-3% yields through direct staking.
Second, XRP maintains category leadership in cross-border payments and settlement technology without facing the intense competition Ethereum experiences in smart contract platforms.
For institutional investors, this market position offers a more transparent value proposition. Third, according to McClurg, XRP ETF products may draw $5 billion in inflows in the first month, which might outperform the launch performance of Ethereum ETFs.
The combination of pent-up demand and institutional recognition of XRP’s utility could drive substantial capital allocation.
The CEO emphasized strong anticipated demand for XRP products based on the token’s established role in traditional financial services. Institutional investors from banking and payments sectors understand XRP’s utility better than other cryptocurrency applications.
McClurg’s one-year timeline for Canary Capital’s XRP ETF filing anticipated the current regulatory clarity. The proactive approach positions the firm for rapid product launch once approval mechanisms activate.
