Will Ripple’s XRP ETF Launch Propel XRP Price to $10?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the ebb and flow of various asset classes. However, none has been as captivating as the meteoric rise of cryptocurrencies, particularly XRP. The recent surge in XRP price amidst the tumultuous SEC vs. Ripple battle is nothing short of extraordinary.

2024 saw an unprecedented surge in XRP’s value, marking a significant achievement for this cryptocurrency amidst the ongoing legal battles between the SEC and Ripple, as well as years of market consolidation. Remarkably, the crypto market rally following Trump’s election win has had a positive impact on this underperforming token, with it currently trading at $2.41 after hitting a seven-year high of $2.84 at the start of the month. With Trump now a vocal supporter of cryptocurrencies, Bitcoin experienced a significant boost in the previous month, which further stimulated other crypto assets. However, this is merely the start, as the potential approval of an XRP ETF could send its price soaring even higher. This approval would make it easier for new investors to invest and create scarcity for the token, increasing its adoption. As a result, fear of missing out (FOMO) might drive the Ripple token’s price up to $10 or potentially higher.

Why XRP Price Could Jump With XRP ETF Launch?

So far, two cryptocurrency exchange-traded funds (ETFs), specifically those based on spot markets, have been operating effectively and gaining popularity among investors. The Bitcoin ETF, which received approval from the Securities and Exchange Commission (SEC) in January, has had a significant impact on pushing the price of Bitcoin to an all-time high (ATH) of $106.4k. Initially, the market took some time to respond to this development, as the price of Bitcoin decreased even as investments flowed into Bitcoin ETFs. Instead, these funds were directed towards other exchange-traded funds.

Regardless, the correlation builds between the two with time, pushing each other to new highs. Even now, the Bitcoin price is on a bullish trajectory, as it hit the ATH of  $106,488.25 just a few hours ago. At the same time, Bitcoin ETF gained a weekly net inflow of $2.17 billion, confirming this theory. With that, the experts believe that the Bitcoin ETF AUM can Surpass Gold ETF by year-end.

In a similar fashion as earlier events with the Ethereum ETF, prior to its trading debut, the cost of Ethereum fluctuated slightly but remained mostly stable. However, following its approval in July 2024, the price started to increase steadily due to an influx of funds into Ethereum exchange-traded funds. Numerous factors played a role in this token’s growth, but the trends in inflows and price charts were quite parallel.

Right now, Ethereum is on an upward trend, with its current trading price at approximately $3,963.13. Moreover, this past week saw an unprecedented $855M inflow of Ethereum, marking a new record high for weekly net inflows. This could potentially mirror the performance of the XRP Exchange-Traded Fund (ETF), possibly leading to a rise in the value of XRP as well.

XRP Price To Hit $10 With XRP ETF Inflows

For three years, the influence of the Securities and Exchange Commission (SEC) held back the growth of XRP, but now things have taken a turn for the better. With Donald Trump’s election victory and Gary Gensler’s departure, XRP has seen impressive gains. This positive news has further fueled speculation that an XRP-based exchange-traded fund (ETF) will be approved due to strong institutional demand. XRP investors have eagerly anticipated this development ever since the approval of Ethereum ETF. As of now, several prominent firms such as WisdomTree, Bitwise, and 21Shares have submitted applications for an XRP exchange-traded fund, awaiting SEC approval.

In spite of their strained connection, the community expects a favorable reaction towards XRP because it currently holds a leading position in the market as the fourth largest cryptocurrency. Furthermore, taking into account the monthly investments into Bitcoin and Ethereum ETFs, the inflows into an XRP ETF could potentially boost the price of XRP up to $10.

During the initial month following the Bitcoin ETF’s debut, approximately $30.18 billion was poured into it. Over a period of three months, this figure climbed to an impressive $217.38 billion, signaling rapid expansion in adoption. Conversely, during the first month after the Ethereum ETF was launched, inflows amounted to about $9.28 billion. In the subsequent three months, these accumulated to $3.81 billion, which is relatively lower compared to Bitcoin’s figures. This suggests that there was a surge in early institutional demand for the Bitcoin ETF, but this trend gradually leveled off over time.

Given its high price sensitivity and smaller market cap compared to Bitcoin and Ethereum, an XRP ETF could potentially attract inflows ranging from $1.8 billion to $2.3 billion in the first month, and $2.0 billion to $2.6 billion over three months. This could cause a slight upward trend for the price of XRP, potentially pushing it beyond $3. However, reaching $10 would require additional favorable circumstances such as the resignation of Gensler, the successful launch of RLUSD, and a resolution in the SEC vs. Ripple case, all coinciding with the ETF’s debut.

**Exciting Update:** #XRP is poised to become the leading cryptocurrency and global standard currency:

— Kingdom Coins (@PropheticCoins) December 14, 2024

Final Thoughts

The market for Exchange-Traded Funds (ETFs) is experiencing rapid expansion due to the triumph of Bitcoin and ETFs based on it. Now, an XRP-based ETF seems poised to enter the scene, given its rising popularity among investors and its recent upward price trend, which has taken it to a seven-year high. This could potentially push the XRP price up to $3 before reaching $10, considering positive factors such as a successful RLUSD launch, the resolution of the Ripple vs SEC case, and improved regulation. Notably, if the inflow pattern for the XRP ETF mirrors that of Bitcoin and Ethereum ETFs, it could attract approximately $2 billion in its first month alone.

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2024-12-16 13:04