XRP ETF Speculation Drives Excitement in the XRP Community
XRP enthusiasts have been abuzz with discussions surrounding the potential launch of an XRP ETF product. The excitement stems from the belief that such a product could significantly impact XRP price action, similar to what has been observed with other cryptocurrencies like Bitcoin.
An XRP ETF Could Bring in More Capital
An exchange-traded fund (ETF) has the ability to attract substantial capital into the XRP market, particularly from institutional investors. This trend has already played out with Bitcoin, which has seen an inflow of over $17 billion in capital since the introduction of its ETF products.
With the success of these products, discussions have emerged around the potential launch of ETFs tied to other crypto assets, and XRP is believed to be next in line. The legal clarity surrounding XRP has sparked optimism among the XRP community regarding the future launch of a spot XRP ETF.
Grayscale Investments recently reintroduced its XRP Trust, signaling the first step towards the possible introduction of an XRP ETF. This move has fueled speculations about the impending launch of an XRP ETF in the near future.
Potential Impact on XRP Price
If an XRP ETF were to garner a significant portion of the inflows seen by Bitcoin ETFs, the impact on XRP price could be substantial. For example, if XRP ETFs attracted 50% of the inflow seen by Bitcoin ETFs, it could result in a capital injection of up to $8.849 billion into the market.
Assuming a conservative inflow-to-valuation multiplier of 1:10, this capital injection could translate to an additional $88.49 billion added to XRP’s market cap. Currently valued at $33.237 billion, the influx of $88.49 billion could push XRP’s valuation to $121.73 billion, representing a significant increase from its current valuation.
With a circulating supply of approximately 56.5 billion tokens, a market cap of $121.73 billion could drive XRP’s price to $2.15. This would mark a 265% surge from its current price of $0.5890, taking it back to levels last seen in January 2018.
The potential for an XRP ETF to influence XRP’s price has captured the attention of investors and enthusiasts alike, offering a glimpse into what could lie ahead for this popular cryptocurrency.
Disclaimer: This content is for informational purposes only and should not be construed as financial advice. The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions.
