VanEck Passes on Spot XRP ETF Despite Strong Investor Demand

According to a Yahoo Finance report, VanEck has decided not to pursue a spot XRP exchange-traded fund even as interest in crypto ETFs remains strong. The asset manager’s choice underscores persistent regulatory and market-structure uncertainties surrounding XRP, a token long entangled in legal scrutiny and classification debates.

VanEck’s move comes amid heightened investor appetite for regulated crypto products. While issuers and institutional managers have increasingly sought to convert retail and institutional interest into listed funds for major tokens, XRP’s path has been complicated by a history of SEC engagement and questions about custody, surveillance, and whether XRP trades would meet the exchange and investor-protection standards required for a spot ETF.

Sources close to the matter point to risk-management considerations that extend beyond simple demand metrics. For many issuers, the decision to launch a spot ETF requires clear regulatory signals, robust market surveillance arrangements with exchanges, and custodial solutions that satisfy compliance teams and regulators. According to market participants, those pieces remain less settled for XRP than for other major tokens, and that gap can make firms reluctant to file or pursue listings even if demand is visible from traders and advisors.

The choice by VanEck does not necessarily signal a lack of long-term interest in XRP products across the industry. Instead, it highlights the differing risk appetites among asset managers and the weight of legal and regulatory risk in product planning. Other firms are watching developments closely; changes in regulatory guidance, court outcomes, or improved market surveillance frameworks could prompt renewed consideration of XRP-based funds.

For investors, the episode is a reminder that ETF availability depends on more than demand: legal clarity, operational readiness, and regulator comfort all play large roles. VanEck’s decision leaves a gap between retail craving for new crypto exposures and the conservative calculus that many managers apply when structuring publicly traded investment vehicles.