Ripple Price Forecast: Implications of an XRP ETF Approval

Cryptonews Dante Raeburn October 2, 2024

Ripple Price Forecast: Implications of an XRP ETF Approval

The approval of an XRP Exchange-Traded Fund (ETF) by Bitwise Asset Management could significantly impact Ripple’s price, potentially raising it above $1. An ETF approval would differ from past Bitcoin and Ethereum experiences by avoiding Grayscale’s outflow pressure, possibly leading to substantial inflows and price increases for Ripple.

Recent projections indicate that should an XRP Exchange-Traded Fund (ETF) be approved, Ripple’s price could potentially surpass the $1 mark. Bitwise Asset Management has submitted a formal request for an XRP ETF to Delaware authorities, marking a significant development for the cryptocurrency as it would represent the first XRP ETF available in the United States. This situation has ignited investor speculation regarding the ramifications of such an approval on the future price of XRP. Given that Bitcoin’s ETF attracted substantial inflows totaling $47 billion, similar inflows could dramatically influence XRP’s market performance. If an XRP ETF secures approval, historical performance metrics from Bitcoin and Ethereum serve as a benchmark for potential price reactions. When the spot Bitcoin ETF received approval on January 10, 2024, the market saw an immediate influx of over $1.6 billion, propelling Bitcoin’s price up by 39% within subsequent months, with the current trading price around $61,500. In contrast, the approval of the Ethereum ETF in June 2024 did not yield similarly robust results; initial inflows diminished, leading to a substantial decrease in Ethereum’s value to $2,478—30% lower than its previous high of $3,521, as uncertainty in the global markets shifted investor preferences towards Bitcoin. Analyzing Ripple’s potential market reaction to an XRP ETF approval reveals promising prospects. With the current market capitalization of XRP at $34 billion, an inflow comparable to Bitcoin’s anticipated $47 billion could elevate the Ripple price by 150% to 300%, potentially reaching values between $1.5 and $2.49. It is crucial to note the distinct characteristics of an XRP ETF compared to those of Bitcoin and Ethereum. Unlike the latter, an XRP ETF would not contend with the adverse effects of Grayscale outflows, a significant factor affecting both Bitcoin and Ethereum. Sistine Research highlighted, “XRP has 1/9 the market cap of ETH and 1/35 that of BTC. Even a few billion in ETF flows would likely have a large impact on price, and it would have no Grayscale outflows to fight.” This distinctive aspect positions XRP as potentially more enticing to investors, especially if the ETF evades the inflow challenges faced by Bitcoin and Ethereum, both of which had strong inflows during their respective launches despite subsequent outflows from Grayscale. In conclusion, the prospects of XRP’s price surge hinge significantly on the approval of the ETF application by Bitwise Asset Management, which could usher in a transformative era for Ripple within the cryptocurrency market. The anticipated absence of downward pressure from Grayscale outflows may lead to a more sustained price increase, with projections suggesting that XRP could reach or exceed the $1.50 mark if investor enthusiasm mirrors that seen with Bitcoin. Investors remain vigilant, awaiting the outcomes of these developments that could redefine the trajectory of Ripple and its standing amongst leading cryptocurrencies.

The cryptocurrency market is currently abuzz with speculation regarding the potential approval of an XRP Exchange-Traded Fund (ETF) filed by Bitwise Asset Management. The approval of ETFs for cryptocurrencies like Bitcoin and Ethereum has historically led to significant price movements attributed to large inflows of capital. Therefore, understanding the possible effects of an XRP ETF is critical, especially considering the unique factors affecting XRP’s market performance, particularly its relationship with Grayscale’s inflows and outflows, which have negatively impacted Bitcoin and Ethereum in the past. This article assesses the implications of an XRP ETF approval relative to the performance of previous cryptocurrency ETFs and offers insights into how Ripple’s price may respond to potential new inflows.

The implications of an XRP ETF approval are substantial, with projections suggesting prices could escalate significantly if similar inflows to Bitcoin’s ETF are realized. Unlike existing Bitcoin and Ethereum ETFs, XRP’s positioning means it could avoid the typical outflow pressures seen from Grayscale, possibly leading to a more stable price increase. Investors are encouraged to closely monitor these developments, as the approval of an XRP ETF could mark a transformative shift for Ripple in the competitive cryptocurrency landscape.

Original Source: coingape.com