The recent developments surrounding XRP ETFs could lead to significant price increases for the cryptocurrency. Major firms such as Grayscale, Canary Capital, 21Shares, and Bitwise are currently seeking approval for their ETF filings this month.
XRP ETF Inflows: A Potential $10 Billion Surge
Canary Capital’s CEO, Steve McClurg, has revised his expectations for XRP ETFs. Initially, he predicted around $5 billion in inflows for their first month. However, in a recent discussion, he hinted that his prior forecast may have been conservative.
Updated Forecast from Canary Capital
- McClurg maintains the original $5 billion target but acknowledges the possibility of inflows reaching $10 billion.
- He remarked that even achieving $5 billion would yield impressive results.
- McClurg referred to the $10 billion figure as a “safe bet” based on his previous experience with Bitcoin futures.
According to McClurg, achieving this level of inflow could place XRP ETFs among the top-performing funds in history. The comparison stems from his prior work, where one ETF launch generated over $1 billion on the first day.
Impact on XRP Price
If the estimated inflows materialize, the consequences for XRP’s market value could be substantial due to the inflow-to-valuation multiplier effect. A recent analysis highlighted that a mere $61 million in inflows previously elevated XRP’s market cap by $16.6 billion, creating an impressive multiplier of around 272 times.
- Hypothetically, even if the multiplier is reduced to one-fifth or around 54.4 times, substantial price gains for XRP remain possible.
- With $10 billion in ETF inflows, XRP’s market cap might rise by approximately $544 billion.
Currently priced near $3 and holding a market cap of about $180 billion, an increase of $544 billion could elevate XRP’s valuation to an astounding $724 billion. Given a circulating supply of roughly 60 billion tokens, this would equate to a price near $12 per XRP if the inflows occur as anticipated.
Conclusion: A Bright Future for XRP?
The forecasted inflows into XRP ETFs signify a pivotal moment for the cryptocurrency. As inflows could drive outstanding price growth, the upcoming month presents a critical opportunity for investors and the market alike. Speculations about the ETF’s performance and market impact continue to build, positioning XRP for a potentially transformative phase.
As always, individuals should conduct thorough research and consider their financial strategies carefully. This article serves as informational content and does not constitute financial advice.
