Bloomberg’s Eric Balchunas Clarifies XRP ETF Demand Amid Growing Interest

TLDR

• Bloomberg’s Eric Balchunas suggests XRP ETFs will likely see less demand than Bitcoin ETFs but remain significant.

• CME Group’s record $1B in XRP futures open interest fuels speculation about higher demand for XRP products.

• Nate Geraci of NovaDius Wealth Management argues institutional appetite for XRP ETFs is stronger than many believe.

• XRP ETFs are expected to be approved in 2025, with an 82% chance according to Polymarket bettors.

The debate over the demand for XRP exchange-traded funds (ETFs) has been reignited following comments from Eric Balchunas, senior ETF analyst at Bloomberg. Balchunas clarified his earlier remarks, stating that while there is interest in XRP ETFs, it will likely be smaller than that for Bitcoin ETFs. He noted that the further an asset moves away from Bitcoin in the digital asset space, the less capital it tends to attract. This is consistent with broader trends in institutional investment, where Bitcoin has maintained a dominant position.

Despite this, Balchunas did not deny the demand for XRP ETFs altogether. His clarification comes amid growing signs of institutional interest in XRP-based financial products. The latest data from the CME Group reveals that XRP futures contracts crossed $1 billion in open interest in under four months, marking the fastest growth rate for a futures contract in recent memory. This rapid uptake has fueled speculation that XRP may see stronger demand for its ETFs than many initially expected.

Institutional Appetite for XRP Products Surges

The surge in open interest for XRP futures is a key indicator of growing institutional interest in the asset. XRP futures surpassed $800 million in assets, reflecting a burgeoning market for XRP products. Nate Geraci, the president of ETF Store, argued that these figures demonstrate a more robust institutional appetite for XRP than is widely acknowledged.

According to Geraci, the data suggests that XRP is not just a niche asset, but one that could attract significant institutional capital once ETFs are available.

The interest in XRP products also follows a broader trend in the crypto space, where institutional investors are increasingly looking beyond Bitcoin for exposure to alternative assets. As traditional finance players become more comfortable with digital assets, products like XRP ETFs are gaining traction. Investors are seeking exposure to a broader range of cryptocurrencies, with XRP being one of the most popular choices outside of Bitcoin.

XRP ETF Approval Odds and Market Expectations

As the SEC continues to delay decisions on various spot XRP ETF proposals, market participants are increasingly optimistic about the chances of approval in 2025. Bloomberg analysts previously stated that the odds of XRP ETFs being approved this year are “extremely high.”

According to Polymarket bettors, there is an 82% chance that XRP ETFs will be greenlit before the end of 2025. This optimism stems from the growing recognition of XRP as a legitimate asset class, coupled with the increasing demand for alternative cryptocurrency products.

Although XRP ETFs are expected to face competition from Bitcoin ETFs, their potential approval could mark a pivotal moment in the development of the cryptocurrency investment landscape. The approval of XRP ETFs would signal further maturation of the digital asset space, providing more institutional investors with a regulated, transparent vehicle for gaining exposure to XRP.

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