New analyses related to one of the assets drawing attention in the cryptocurrency market, XRP, have once again heightened investor expectations. A similar scenario discussed previously with Solana (SOL) focused ETF approvals has paved the way for an increase in institutional interest, which is being considered for XRP as well.
Transition from Solana to XRP
In recent months, the Bitwise Solana Staking ETF (BSOL) and Grayscale Solana ETF (GSOL) introduced in the U.S. garnered significant interest from institutional investors. On its first day, BSOL experienced inflows of approximately $69.45 million, while GSOL remained at $4 million. This development signaled a growing interest in alternative crypto assets beyond Bitcoin and Ethereum. According to experts, when such ETFs make purchases equivalent to 5% of the circulating supply, they can have a strong impact on price. When applying this calculation to XRP, it is anticipated that withdrawing 5% of the supply from the market could elevate XRP’s price above its current level.
Institutional Moves and Expectations for XRP
According to experts, a similar process has commenced for XRP. Several ETF applications related to XRP are currently under review by the U.S. Securities and Exchange Commission (SEC). Companies like Bitwise and Canary Capital, which previously launched similar products for Solana, Hedera (HBAR), and Litecoin (LTC), have expedited their applications for an XRP ETF. Additionally, the investment firm 21Shares is making adjustments to its XRP spot ETF application to accelerate the process. Experts suggest that approval of these applications could trigger an influx of billions of dollars in institutional capital into the XRP market.
Modeling indicates that if XRP ETFs remove 4.95 billion tokens, equivalent to 5% of the total supply, from the market, it would represent an inflow of $12.3 billion. This scenario could potentially increase XRP’s market cap from $150 billion to $1 trillion. Under such circumstances, the token price could climb from $2.20 to $16.85, marking a 574% increase.
In light of another recent development, ETF expectations have not only heightened institutional interest in XRP but also in the overall crypto market. Institutional demand for XRP has grown substantially in recent weeks, and the acceleration of the ETF process could further fuel this interest.
In summary, two strong dynamics are at play for XRP: the scenario of increased supply contraction with ETF approvals, as seen with Solana, and the preparation of institutional investors for this process. However, it is essential to recognize that these forecasts are based entirely on modeling. The actual price movement may vary depending on market liquidity, investor behavior, and the pace of regulatory processes. Therefore, when evaluating XRP’s future, it’s crucial to balance both the potential and risks involved.