The potential introduction of a spot-XRP exchange-traded fund (ETF) in the U.S. has sparked interest once again. According to commentary from community figure Skipper, approval of such a fund by the U.S. Securities and Exchange Commission (SEC) could open the floodgates to institutional capital and fundamentally shift XRP’s outlook.
Skipper argues that once the SEC grants approval for an XRP ETF, large-scale financial firms will gain a regulated route to exposure. He maintains that Wall Street would find it difficult to ignore a payments-oriented asset still trading relatively modestly.
With institutions entering via an ETF, demand could rapidly absorb available supply. That dynamic, according to him, would place upward pressure on the token’s value.
Built-in Supply Reduction Mechanism
A second pillar of the case focuses on XRP’s deflationary characteristics. Skipper highlighted that every transaction on the XRP Ledger (XRPL) destroys a small amount of XRP, gradually reducing its total circulating supply.
Unlike fixed-supply tokens such as Bitcoin, XRP’s adaptive supply model introduces a built-in tightening mechanism. In the combination of rising institutional demand and shrinking supply, Skipper sees the potential for meaningful value appreciation.
Stablecoin Integration and Ecosystem Expansion
Skipper also drew attention to RLUSD, a U.S. dollar-backed stablecoin issued by Ripple Labs and built on the XRPL. He views RLUSD as a strategic lever to drive transaction volume across the XRPL, which in turn would increase the rate of XRP burns and reinforce the supply-contraction thesis.
He pointed out that RLUSD achieved roughly a 604% increase in circulation over six months and became one of the fastest-growing stablecoins globally, indicating that the project may still be in its early scaling phase.
Ripple’s Strategic Choice and Competitive Advantage
According to Skipper, the launch of RLUSD was not necessary for Ripple’s success, yet it was chosen deliberately. By issuing its own stablecoin rather than relying entirely on third-party options, Ripple retains greater control over value flows, transaction settlement, and the utility of the XRPL.
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Skipper argues this approach gives the company a strategic edge. When an organization controls both the payment infrastructure and the settlement layer, the core token (XRP) can gain relevance beyond speculative usage. He contends that as investors grasp this integrated vision, institutional demand for XRP may rise sharply.
Regulatory Developments and Potential Inflows
Regulatory developments are advancing quickly. The Depository Trust & Clearing Corporation (DTCC) now lists several proposed XRP ETFs, including filings from Canary Capital, Franklin Templeton, Bitwise, and 21Shares.
Canary Capital has targeted November 13 for launch, pending Nasdaq approval, while Franklin Templeton recently amended its filing to remove prior delay provisions, aiming for a late-November decision.
ETF analyst Nate Geraci commented that the first XRP ETF registered under the Securities Act of 1933 could debut as soon as this week if approvals align.
Meanwhile, Steven McClurg, CEO of Canary Capital, estimated potential inflows of roughly $10 billion within the first month of trading, a level of demand that could significantly impact market liquidity and price stability.
Converging Forces for XRP's Growth
The potential launch of a spot-XRP ETF may represent more than simply another financial product. For XRP, it could cause a shift into regulated institutional waters, matched with micro-supply contraction via transaction burns, and supported by an expanding stablecoin ecosystem built by Ripple.
If these forces converge, the token may be positioned for meaningful price growth.