Dom Kwok, co-founder of EasyA, emphasizes that XRP ETFs could surpass other crypto-related exchange-traded funds in terms of inflows.
As multiple spot XRP ETF applications approach their final decision deadlines, Kwok has made bold claims about the potential of the investment product.
XRP ETFs Could Be the Biggest in Crypto
During an interview on the Paul Barron Network (PBN) podcast, Kwok suggested that if the U.S. SEC approves the XRP ETFs, they could attract the largest inflows of any other crypto ETFs. His reasoning is based on XRP’s global holder base, which he believes is among the largest in the crypto industry.
He also mentions that XRP has consistently ranked among the most traded cryptocurrencies on Coinbase and other global exchanges. Notably, Kwok backed his views by referencing a recent Coinbase report that showed XRP as the second-largest asset by trading volume, after Bitcoin.
Consequently, he argued that, given XRP’s popularity and market activity, regulated ETFs tied to the token could attract the largest inflows of any other crypto assets, potentially making it the biggest crypto ETF yet.
Factors Indicating Strong Demand for XRP ETFs
Indeed, XRP remains among the most actively traded cryptocurrencies in the market. Its daily trading volume sits at $6.6 billion, with nearly $6.5 billion of that coming from centralized exchanges.
Given XRP’s massive volume, some experts believe that demand for spot XRP ETFs could surge if the SEC approves them. Another factor fueling this belief is the cryptocurrency’s recent milestone on the CME.
As previously reported, XRP made history on CME after it became the fastest cryptocurrency to hit an open interest of $1 billion. This comes just three months after XRP futures contracts made their debut on the leading derivatives marketplace.
The rapid success of CME’s XRP futures is seen as proof of a growing institutional appetite for the token. Amid this, Kwok expresses that XRP could attract the largest inflows and eventually become the biggest crypto ETF.
Current Performance of Crypto ETFs
For context, Bitcoin and Ethereum are currently the only cryptocurrencies with standalone ETFs in the United States. While Bitcoin ETFs have attracted a total of $54.16 billion in inflows, Ethereum ETFs have garnered $13.65 billion.
Several asset managers, including Canary, Grayscale, and Bitwise, are vying to launch other spot crypto ETFs in the U.S., with 11 of them focused on XRP. The SEC will issue its final decision on some XRP ETF applications in October.
Data from Polymarket indicates that XRP has an 84% chance of being approved for an ETF by the end of this year. Meanwhile, whether the product will outperform other crypto ETFs in terms of inflows remains to be seen.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
