ETF Overview: On April 25, 2025, Hashdex launched the world's first XRP spot ETF (XRPH11) on Brazil's B3 exchange, tracking the Nasdaq XRP reference price index, with 95% allocated to XRP, net assets of about $40 million, management fee of 0.7%, and custody fee of 0.1%.
Market response: After launch, XRP rose over 8%, trading volume increased by 22%, current price is about $2.20, with a market cap of $128.3 billion (third). XRP ETP saw an inflow of $37.7 million in a week, with global AUM around $950 million.
Background: Brazil's CVM approved quickly, leading the world. CME recently launched XRP futures, accelerating institutional entry. The probability of U.S. ETF approval is 74% (Polymarket), which could attract $8-14 billion in inflows.
XRP potential: Focused on cross-border payments (3-5 seconds, low cost), Ripple works closely with banks. It is difficult to surpass BTC ($2.5 trillion) or ETH ($450 billion) in the short term, but if the U.S. ETF is approved, XRP could become the third choice for institutions, with promising long-term prospects in the payment sector.
Risk: Unclear U.S. SEC regulation (decision on ETF by May 22), small Brazilian ETP market (accounting for 0.9% of global market), requires global funding support.
Personal opinion
XRPH11 and CME futures are milestones for the institutionalization of XRP, potentially pushing prices to $2.50-$3 in the short term. XRP has a unique payment track, but to challenge BTC/ETH it needs U.S. ETF approval and clear regulation. It is more likely to become the third major player in the financial sector, coexisting with BTC/ETH. Do you think XRP will take off?
