The cryptocurrency market is constantly evolving, and recently, substantial attention has turned towards XRP. Notable analyst Chad has outlined two possible futures for XRP amidst current trends, emphasizing that investors stand to gain, regardless of the outcome.
Potential Futures for XRP: What Investors Should Know
Chad discussed two distinct paths for XRP in a recent tweet. The first scenario suggests that XRP might maintain its current price, leading to significant investments in the cryptocurrency as Exchange-Traded Funds (ETFs) acquire the total circulating supply within a year. The alternative scenario presents a sharp increase in XRP’s price, discouraging further purchases due to elevated costs.
Chad confidently asserted that XRP investors would thrive regardless of which scenario unfolds. As he highlighted in another post, it is probable that XRP’s value could experience an extraordinary increase if these ETFs gain traction. A remarkable indication of this potential is represented by the recent launch of the inaugural 33 Act XRP ETF, which observed significant inflows in its initial days. According to data from SoSo Value, this fund collected an impressive $245 million on its first day and another $243 million the following day.
Moreover, several additional XRP ETFs are anticipated to debut shortly. The highly awaited Franklin Templeton ETF is likely to launch this week, following the removal of a delay amendment on its S-1 filing. Other noteworthy players, including Bitwise and 21Shares, may also follow suit with launches expected in the coming days.
Chad suggests that these upcoming ETFs could drive bullish momentum for XRP. The influx of new capital might significantly bolster the ecosystem surrounding XRP, which could be a game changer for its valuation. Institutional interest has surged recently, as indicated by the Canary fund’s performance, which stands out as one of this year’s most successful launches in trading volume.
Understanding the Impact of ETFs on XRP Valuation
In another informative tweet, Chad unveiled his model portraying the potential impact of XRP ETFs on pricing. His analysis demonstrated how a collection of 20 ETFs, each initiated with $45 million, could lead to a cumulative inflow of $900 million. This influx would absorb a portion of XRP’s supply, estimating prices could surge between $10 and $17 within 30 days, and possibly reach between $13 and $24 in 60 days.
Chad also pointed out the potential supply shock that could arise due to these ETFs. He explained that Over-the-Counter (OTC) desks will initially cover ETF purchases, but will eventually need to buy on public exchanges. Presently, the circulating XRP supply on exchanges is approximately 2.8 billion, a figure that ETFs can likely target for acquisitions.
As of now, the trading price for XRP stands at around $2.25, reflecting a positive shift within the last 24 hours, according to CoinMarketCap.
