The CEO of Canary Capital expects strong institutional demand for XRP exchange-traded fund products.
The settlement raises the likelihood of approval for XRP exchange-traded funds from 53% to 88% in 2025.
The new listing standards at Nasdaq enable the approval of XRP exchange-traded funds through futures markets.
Optimism about the approval of the XRP exchange-traded fund has increased after the conclusion of the SEC's case against Ripple, as prediction markets have shown drastic shifts in approval expectations.
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According to Stephen Maclurg, CEO of Canary Capital, institutional demand trends and structural advantages suggest that XRP exchange-traded fund products may perform better than Ethereum offerings.
Maclurg highlighted the impact of the settlement on market sentiment, noting that the chances of approval for the 2025 Bull Market have jumped from 53% to over 88% within a week. The CEO confirmed that even without the settlement, the XRP exchange-traded fund should be approved, as a federal judge previously ruled that XRP is not a security.
The general listing standards pave a clear path for approval.
The new listing standards published by Nasdaq, New York Stock Exchange, and CBOE provide a framework for the approval of exchange-traded funds (ETFs) based on organized U.S. futures markets that have been operating for over six months. XRP is expected to meet this standard soon, as futures markets are now active on CME and Coinbase exchanges following their launch in 2025.
Maclurg expects to launch between five and seven cryptocurrency exchange-traded funds once the new standards come into effect, including products for XRP, Litecoin, and HBAR. However, he sees that XRP has a unique position due to its leading role in the financial services infrastructure.
The CEO's experience in traditional financial services provides a deeper understanding of institutional preferences for payment channels and XRP's settlement technology. This institutional knowledge may contribute to increased demand compared to other cryptocurrency exchange-traded fund products.
Three factors support the superiority of XRP exchange-traded funds.
Maclurg identified specific reasons why XRP exchange-traded funds may outperform Ethereum products. First, XRP lacks storage opportunities, which eliminates the opportunity cost that makes Ethereum exchange-traded funds less attractive to original cryptocurrency investors who can achieve returns of 2% to 3% through direct storage.
Secondly, XRP maintains its leadership in cross-border payments and settlement technology without facing the intense competition that Ethereum encounters in smart contract platforms.
For institutional investors, this market situation provides more transparent value. Thirdly, according to Maclurg, XRP exchange-traded fund products may attract flows of $5 billion in the first month, which could outperform the performance of Ethereum exchange-traded funds at their launch.
The combination of latent demand and institutional recognition of the benefits of XRP may drive significant capital allocation.
The CEO emphasized the expected strong demand for XRP products, based on the established role this currency plays in traditional financial services. Institutional investors in the banking and payments sectors understand the benefits of XRP better than other cryptocurrency applications.
The timeline set by Maclurg, extending over one year, to file for the XRP exchange-traded fund for Canary Capital was anticipating current regulatory clarity. This proactive approach positions the company to launch the product quickly once approval mechanisms are activated.
