XRP, the digital asset, has experienced a significant surge in value, rising approximately 12% to around $2.52 within the last 24 hours. This upward trend is largely attributed to the Depository Trust & Clearing Corporation (DTCC) adding five spot XRP ETFs to its “active and pre-launch” list. The inclusion of these ETFs on DTCC’s public database has sparked speculation that the long-awaited exchange-traded products for XRP are on the verge of launching, following in the footsteps of Bitcoin and Ethereum ETFs earlier this year.
Understanding the Significance of DTCC Listing
The DTCC listing is a crucial milestone, as the company is the primary settlement and clearing firm for the U.S. securities markets, handling over $3.7 trillion in transactions in 2024. Any ETF traded on a U.S. exchange must be registered through DTCC, making it the central hub connecting Wall Street to digital assets. However, it’s essential to note that inclusion on the DTCC website does not signify that the funds are approved or ready to trade. Instead, it indicates that issuers and their custodians have completed preparatory work, such as creating tickers, CUSIPs, and back-end infrastructure, while awaiting SEC approval.
This distinction is vital, as seen in the cases of spot Bitcoin ETFs and Ethereum ETFs, which appeared on DTCC’s website before their official launch. The market reacted immediately, driving the prices of BTC and ETH higher even before the products went live. The XRP case is following a similar pattern, with early infrastructure build, speculative enthusiasm, and a waiting game for regulatory approval.
Potential Impact of XRP ETF on Market Structure and Access
If the SEC approves these funds, they would open new institutional channels for XRP exposure, allowing traditional brokers and asset managers to route liquidity through well-known ETF vehicles instead of moving through crypto exchanges. This shift could reduce friction for retirement accounts and mutual fund distributors, which are typically prohibited from purchasing cryptocurrencies directly. The introduction of XRP ETFs would also solidify XRP’s status as a regulated investment product, expand its market depth, and tie it more closely to the U.S. financial system.
The potential launch of XRP ETFs could have a profound impact on the market structure, adding a layer of demand independent of FX spot flows and smoothing volatility. This, in turn, could more closely link XRP performance to fund launches and redemptions, generating returns from the asset’s liquidity and attracting institutional capital. For issuers, it’s an opportunity to capitalize on the asset’s liquidity and attract the same kind of institutional capital that has reshaped Bitcoin’s trading ecosystem.
Regulatory Obstacles and Next Steps
However, some hurdles still remain for XRP, as the SEC has not yet officially decided on the XRP ETF filing, and no public 19b-4 filings or S-1 forms have been released for trading. The DTCC listing alone does not constitute an endorsement, as some entries in the database are never published. What it confirms is that issuers are preparing in parallel, betting on eventual regulatory clarity following Ripple’s partial court victory last year that classified programmatic XRP sales as non-securities.
The price reaction shows how sensitive the markets are to even small steps towards institutional integration. After weeks of subdued trading, XRP hit a higher high on the hourly chart, extending gains that began earlier in the week. The move represents a breakout from consolidation fueled by the ETF headline. Whether these gains continue depends less on the DTCC database and more on whether the SEC allows these products to transition from pre-market status to live trading.
As the market waits for the next milestone – the day when the “Pre-Launch” label is removed and replaced with “Live” – the DTCC quotes remain a promise that the market is already starting to price in. For more information, visit https://cryptoslate.com/xrp-jumps-as-dtcc-lists-5-spot-etfs-what-changes-when-they-actually-launch/
