XRP Price Moves Following Approval of XRP ETFs with Potential 15-30% of Bitcoin ETF Inflows
XRP’s potential price surge following the approval of XRP Exchange-Traded Funds (ETFs) in the United States has generated significant interest among market participants. With regulatory obstacles surrounding XRP largely resolved, and institutional demand on the rise, the approval of XRP ETFs could have a profound impact on the asset’s price.
According to Polymarket, there is an 80% chance that XRP ETFs will be approved this year, reflecting an increase from 68% just a week ago. As anticipation builds around these financial products, the prevailing sentiment is that they could have a bullish effect on XRP’s price, similar to the success observed with Bitcoin ETFs.
When considering the potential inflows into XRP ETFs, data from Sosovalue suggests that Bitcoin ETFs have attracted approximately $39 billion in net inflows since their introduction in January 2024. If XRP ETFs manage to capture just 15% to 30% of this amount, the impact on XRP’s price could be substantial.
For example, if XRP ETFs garner 15% of Bitcoin’s ETF inflows, which equates to $5.85 billion, this could result in a $585 billion increase in XRP’s market capitalization. With XRP’s current market cap standing at around $130 billion, the total valuation could reach $715 billion, leading to an estimated price of $12.23 per token – marking a 450% increase from the current trading price of $2.22.
In a more optimistic scenario where XRP ETFs capture 30% of Bitcoin ETF inflows, resulting in an $11.7 billion inflow, the potential price surge could be even more significant. A $1.17 trillion increase in XRP’s total valuation would be expected, propelling the token price to $22.2 – an almost 900% appreciation from its current price level.
Despite these projections being based on assumptions, the growing interest in XRP ETF products indicates that institutional investors may flood the market once approvals are granted. Bitwise CIO has confirmed the substantial demand for an XRP ETF, highlighting the strong interest in the product.
While several firms have submitted applications for spot XRP ETFs, including Bitwise, 21Shares, WisdomTree, and Franklin Templeton, no approvals have been granted as of yet. The recent extension of the review period for Franklin Templeton’s spot XRP ETF proposal by the U.S. SEC on April 29 underscores the ongoing regulatory process that these products are subject to.
The potential resolution of the Ripple vs. SEC case could bolster the likelihood of XRP ETF approvals, and the introduction of regulated XRP futures contracts by firms like Bitnomial, Coinbase, and CME Group further indicates the evolving landscape of XRP investment products.
