The impact of an XRP ETF could be significant in the cryptocurrency market. Here are some key points:
Impact on XRP Price
- The approval of an XRP ETF could boost the price of XRP due to increased institutional demand. Analysts estimate that XRP ETFs could gather between $4 billion and $8 billion in new net assets in six to twelve months.
- Historically, ETF approvals have triggered significant price increases, such as Bitcoin, which rose 150% after the approval of Bitcoin ETFs in January 2024 ¹.
Legitimacy and Adoption
- An XRP ETF could provide greater legitimacy in traditional financial markets, reducing volatility and increasing adoption.
- The influx of institutional investment could drive significant price appreciation and enhance XRP's position in the cryptocurrency market.
Challenges for Long-Term Viability
- XRP faces challenges in maintaining its relevance in the face of competition from stablecoins, which have already captured the global payments and remittances market.
- For XRP to maintain its relevance, it must differentiate itself by offering unique advantages that stablecoins do not provide.
Probability of Approval
- Analysts from Bloomberg Intelligence estimate a 65% probability of approval for an XRP ETF, while prediction markets suggest a 78% chance of approval by 2025 $BTC $XRP