SEC Greenlights In-Kind ETFs—Will XRP Be the Next Crypto to Explode?

The SEC just cracked open the door for in-kind ETFs—and the crypto world is buzzing. Could XRP be the next domino to fall?

Wall Street's latest regulatory nod sends shockwaves through digital assets. Traders are already placing bets on which token gets the ETF treatment next.

XRP's army of supporters smells blood in the water. After years of legal limbo, Ripple's native token might finally get its moment—just as institutional money starts pouring in.

Of course, the suits will take their cut first. Because nothing moves finance forward like creating new fee structures for old products.

What Is the In-Kind ETF Model?

Traditionally, ETF creators had to buy or sell crypto assets using cash. This created delays, extra costs, and exposure to price swings. But with the in-kind model, participants can directly exchange crypto tokens for ETF shares, reducing fees and improving efficiency.

This method is already used in gold ETFs, so bringing the same model to crypto brings familiarity to traditional investors. So far, this structure has been adopted only for Bitcoin and Ethereum ETFs trading on major exchanges like Nasdaq and the New York Stock Exchange (NYSE).

SEC Chairman Paul Atkins said the MOVE is part of a broader plan to modernize the agency’s stance on digital assets. While the SEC has been slow to adapt in the past, this shift signals they may be trying to catch up with the evolving crypto market.

Bitcoin and Ethereum ETFs Benefit First

The immediate winners are existing bitcoin and Ethereum ETFs. These funds now gain greater flexibility in managing large inflows and redemptions, especially during periods of high market activity. The SEC also approved higher position limits and even allowed new hybrid ETFs that combine both Bitcoin and Ethereum, showing a willingness to test new strategies.

This reflects a noticeable change in the SEC’s approach—one that’s more open to innovation. Just a year ago, such steps would’ve seemed unlikely. Now, the door is open—if only slightly—for more altcoin-based ETFs.

XRP Could Be the Next ETF Contender

With XRP already cleared of being a security in certain legal rulings, the timing of this new ETF structure is important. Several XRP ETF applications are still pending with the SEC. Although no XRP ETFs have been approved yet, the new framework gives these applications a better chance to succeed.

Attorney Bill Morgan recently said on social media that this update could be a “huge win” for XRP ETFs. He emphasized that XRP’s legal clarity and the in-kind model together offer a strong foundation for future approval.

While the SEC missed some deadlines to respond to XRP ETF applications, they haven’t rejected any of them either. Commissioner Hester Peirce has stated that although progress is slow, the SEC is taking a careful approach. Some analysts are hopeful that a decision on XRP ETFs could come by October 2025.

A More Consistent Framework Across Crypto

Under new leadership, the SEC appears less hostile to crypto. Chairman Atkins and Director Jamie Selway have emphasized efficiency rather than strict enforcement. That’s a big shift from the days when former Chair Gary Gensler was leading the agency with a more aggressive stance.

This new tone is encouraging for altcoins like XRP. Now that the in-kind model has been tested with Bitcoin and Ethereum ETFs, it provides a clear and approved structure for others to follow. XRP, being one of the largest cryptocurrencies by market cap and one with strong legal backing, stands out as a natural next step.

Conclusion

The SEC’s approval of the in-kind creation and redemption model marks a major step forward for crypto ETFs. While Bitcoin and Ethereum benefit first, the move could also help accelerate the approval process for other digital assets like XRP.

Legal clarity, efficient trading mechanisms, and a more open regulatory tone are creating the right environment for altcoin ETFs. If the current momentum continues, XRP might finally break out of the waiting line and gain its spot in the ETF market.