XRP ETF could become the largest crypto fund due to high liquidity, loyal holders, and strong trading volumes.
Accessibility and lower price make XRP ETFs appealing for retail investors, serving as a gateway to mainstream adoption.
The race for crypto-based exchange-traded funds (ETFs) is getting intense, and many eyes are now on Ripple’s native token, XRP. Dom Kwok, co-founder of Easya, recently made a prediction that an XRP ETF could attract more inflows than any other digital asset fund in the market, making it the biggest ETF in crypto. But why?
In an interview with Paul Barron Podcast, Kwok explained that XRP has one of the largest and most loyal holder bases in the digital asset space, with consistently high trading volumes across exchanges. In Coinbase’s most recent market reports, XRP ranked alongside Bitcoin and Ethereum as one of the most traded cryptocurrencies.
“Bitcoin, Ethereum, and XRP are the top three most liquid tokens,” Kwok said, explaining that this liquidity would translate well into ETF markets. “When you think about investors who don’t hold crypto directly, or even those who don’t want to deal with wallets and exchanges, ETFs become the natural entry point. For them, XRP has massive appeal.”
Accessibility Could Drive Demand
Another factor driving this prediction is XRP’s accessibility. Unlike Bitcoin and Ethereum, which trade at higher nominal prices, XRP remains relatively affordable to the average retail investor. Kwok says this lower barrier to entry could fuel stronger retail participation through an ETF.
“Most people can’t afford to buy a whole Bitcoin, and even Ethereum is expensive for many. XRP is priced in a way that feels accessible. It gives new investors a sense that they can own more units of the asset, and that psychological factor matters,” he added.
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The ETF Gateway for Mainstream Investors
Currently, only about 7% of the world owns cryptocurrency, according to global adoption studies. For the other 93%, ETFs may serve as the first point of contact with digital assets. Kwok argued that ETFs simplify the process, allowing investors to gain exposure without worrying about private keys, wallets, or technical hurdles.
“ETFs are often the first step,” Kwok said. “People start with an ETF because it’s regulated, it’s listed on familiar exchanges, and then eventually, they gain confidence and buy the crypto outright. That’s how mass adoption begins.”
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FAQs
XRP’s lower nominal price makes it more accessible to the average retail investor compared to Bitcoin and Ethereum. This lower barrier to entry can create a psychological appeal, making new investors feel they can own more units of the asset.
According to Kwok, XRP is one of the top three most liquid tokens alongside Bitcoin and Ethereum, with consistently high trading volumes. This strong liquidity would be a major advantage for an ETF.
ETFs act as a gateway for mainstream investors, simplifying the process of gaining exposure to digital assets without the need to worry about wallets, private keys, or technical hurdles. This regulated entry point could be the first step for a large portion of the 93% of the world that doesn’t currently own crypto.