Here’s Why an XRP ETF Could Outperform Ethereum ETFs, According to Canary Capital CEO

Optimism around an XRP ETF (exchange-traded fund) is surging with the long-running SEC case against Ripple now officially over. Ongoing discussions suggest that XRP ETF products could even outperform Ethereum ETFs. Canary Capital CEO Steven McClurg shared this perspective in a recent podcast with Paul Barron, which covered the latest developments in the Ripple lawsuit. XRP ETF Coming This Year He pointed out that the settlement has dramatically shifted market expectations. Notably, prediction platform Polymarket now places the odds of ETF approval in 2025 at over 88%, a sharp jump from 53% the previous week. McClurg, whose company has filed for an XRP ETF, also believes the product could launch this year. "I absolutely believe there will be an XRP ETF this year," he said. However, he did not give a 100% guarantee, noting that anything can happen. Yet, he believes the conclusion of the Ripple lawsuit accelerated momentum. Meanwhile, McClurg argued that even without the settlement, there’s no reason an XRP ETF shouldn’t secure approval since a judge has already ruled that XRP is not a security. “That’s exactly why we filed for this ETF a year ago,” he said. Further supporting the case for an XRP ETF, McClurg pointed to a new generic listing standard published by NASDAQ, the NYSE, and CBOE. The new standard would allow tokens with a regulated U.S. futures market for over six months to qualify. XRP is expected to meet that criterion within months. Notably, XRP futures markets are now live on CME and Coinbase, both of which launched earlier this year. There Will Be Strong Institutional Demand for an XRP ETF Once the new listing standards succeed, McClurg predicts that between five and seven crypto ETFs could launch, including XRP, Litecoin, and HBAR. However, he sees XRP as uniquely positioned due to its dominance in financial services infrastructure. “There’s going to be very strong demand for XRP,” McClurg said. “It’s the leader in more traditional financial services rails, and coming from that industry, I understand that advantage very well.” The discussion then shifted to the performance of Ethereum and Bitcoin ETFs, and McClurg expressed confidence that XRP could outperform Ethereum. He outlined three main reasons why an XRP ETF could have an edge: Three Reasons XRP Could Outperform Ethereum ETFs No Staking Opportunity Cost McClurg noted that Ethereum holders can earn a 2–3% yield through staking, which makes an ETF less attractive to crypto-native investors. Since XRP doesn’t offer staking, ETF investors aren’t missing out on any potential yield. XRP Is a Category Leader While Ethereum faces competition in the smart contract space, XRP continues to lead in cross-border payments and settlement technology. Community and Demand Further, McClurg estimates that XRP ETF products could attract $5 billion in inflows during the first month, potentially outpacing Ethereum ETF launches. The Future Role of Staking in ETFs Addressing concerns that future XRP staking capabilities could compete with an ETF, McClurg revealed ongoing discussions with the SEC to allow staking within ETF structures.  “We’re all talking to the SEC to get staking allowed in ETFs,” he said. “So, by the time the ledger moves in that direction, we should be in the clear and able to offer staking within the ETF.” He noted that Ethereum ETFs were initially disadvantaged by their inability to offer staking yields. However, a change could make ETH ETFs more attractive to traditional and crypto native investors.