Key Insights:
- Crypto ETFs like Evolve XRP offer institutional access to digital assets.
- Surge in crypto ETF filings signals growing institutional interest in altcoins.
- Crypto ETFs face regulatory hurdles, with staking impacting altcoin approvals.
Numerous Crypto ETFs on cryptocurrencies have been filed in 2025. This trend is significant with the recent announcement of two XRP exchange-traded funds (ETFs) in Canada, which represents an important step towards the full incorporation of cryptocurrencies into the mainstream financial system.
The crypto ETF trend, especially in the altcoins, is also transforming how investors can invest in digital assets, providing a safe and regulated mechanism for holding and trading cryptocurrencies.
XRP ETFs: Paving the Way for Digital Asset Investment
On June 16, 2025, a major Canadian asset management company, Evolve Funds Group Inc., submitted a final prospectus of the Evolve XRP ETF.
One of the first significant steps to the massive adoption of crypto ETFs will be this ETF, which is scheduled to begin trading on the Toronto Stock Exchange (TSX) under two ticker symbols. These are XRP (CAD Unhedged) and XRP.U (USD) on June 18.
Without an underlying securities transaction, the ETF will use physical XRP holdings as its main investing focus to give investors a secure and convenient solution to accessing XRP without necessarily owning a cryptocurrency.
The Chief Investment Officer and Chief Operating Officer at Evolve, Elliot Johnson, emphasized on XRP’s utility — cheap, rapid cross-border payments and a decentralized exchange. The Evolve XRP ETF will not involve any derivative contracts and will not hedge against foreign currency risk.
Alternatively, it will use an inactive plan, whereby the fund will hold long-term XRP tokens acquired using well-established markets like Coinbase.
The structure will provide a safe investment option that any investor can decide to pursue if he or she seeks to leverage the expanding use case of XRP in global financial circles.
Simultaneously, another company, Purpose Investments Inc., also announced the future introduction of its Purpose XRP ETF that will be traded as XRPP on June 18, 2025.
This will come on the heels of the Purpose XRP ETF, which will also feature multiple unit offerings, such as CAD-hedged, CAD non-hedged, and USD units, broadening access to investor participation in this ground-breaking crypto ETF product.
Crypto ETFs Gain Momentum with Altcoin Focus
Interest in XRP ETF is but the start of a bigger movement in the crypto realm. It reveals that 2025 experienced a spectacular surge in altcoin ETF filings, where more than 31 applications have been filed with the U.S. Securities and Exchange Commission (SEC) as of the first half of the year.
The regulatory environment has also changed a great deal since 2024. This is when the first Bitcoin and Ethereum spot ETFs were approved, and today, analysts expect these institutional investors to flock to altcoin ETFs.
VanEck, WisdomTree, and Franklin Templeton have submitted an ETF registration for several altcoins, including BNB, Avalanche, and Solana.
This influx of crypto ETF submissions has increased the hope of a possible altcoin summer, a time when institutional buying of altcoins is likely to take off.
The XRP and Doge altcoin ETFs have been among the most awaited ETFs in terms of altcoins, as they have attracted a lot of attention from both retail and institutional investors.
Since 2025, the SEC’s attitude toward altcoin ETFs has started changing. Despite the fact that the entry of altcoin ETFs has already been attempted in the past, regulatory issues have brought it down, analysts are optimistic that recent turn-of-events, such as the legalization of Bitcoin and Ethereum ETFs, ensure more encouraging conditions.
According to Bloomberg ETF analyst Eric Balchunas, Litecoin may be the first-ever altcoin ETF to pass the SEC, and Solana will be close behind.
The SEC’s Evolving Stance on Crypto ETFs
The SEC’s listing of Bitcoin and Ethereum ETFs was a game-changer in the history of cryptocurrencies, opening regulated access for institutional investors to exposure to digital assets. Nonetheless, the SEC has always been reluctant to authorize alt-coin ETFs because it felt uncertain about how the regulatory authorities should classify these financial products.
The SEC is softening its stand on the approval of altcoin ETFs, and a few applications are currently under examination. The new leadership of the SEC under Chairman Paul Atkins played a significant role in the demand for a crypto-friendly regulatory framework.
Atkins has been doing this since passing his policy to reverse the policies of his predecessor, Gary Gensler, who many in the industry believed repressed crypto innovation.
In its bid to promote the development of the crypto market, the SEC has rolled back some of its proposed regulatory actions, such as Rule 3b-16, which proposed to broaden the definition of an exchange to encompass decentralized finance (DeFi) protocols.
The action is a good indication of the future of crypto ETFs because it will now open the door to a more open regulatory regime that will cover both centralized and decentralized crypto products.