In this article, we will examine the factors that could support the bull run of the two altcoins.
Ethereum at $10,000 and XRP $XRP at $15? Several analysts are pointing to these price targets for the two altcoins in their forecasts, but are they really possible? These are ambitious goals, but under certain circumstances, they might not be entirely out of reach.
In this article, we will examine the factors that could support the bull run of the two altcoins, both among the top 5 by market cap.
ETFs could trigger the next rally in the two altcoins
Institutional investors are playing a decisive role in the development of the entire cryptocurrency sector. The numbers prove it. Data shows that on July 16, inflows into Bitcoin reached $801 million, while those into Ethereum reached $727 million.
The two assets are attracting significant flows from institutional investors. But an important detail emerges when we compare the flows with their market capitalization.
Ethereum, though smaller than Bitcoin in terms of market cap, is attracting almost the same inflows. This, proportionately, indicates stronger investor interest.
The amount of ETH held through investment products is increasing. Spot funds have seen twelve consecutive weeks of inflows.
According to data from the SosoValue platform, BlackRock leads the way with its iShares Ethereum Trust ETF, known by the ticker $ETHA , followed by Grayscale with its $ETHE fund. Given the pace of accumulation, a new all-time high for the asset doesn't seem far off. This is also why many experts are estimating a target of $ 10,000.
Furthermore, the inclusion of staking in Ethereum funds is currently under consideration . The first Solana fund with staking has already launched, but the question remains open for the second-largest cryptocurrency by market cap. Its inclusion could expose the asset to the age-old issue of its classification as a security.
Meanwhile, BlackRock has also requested the addition of staking to its fund. Several companies have submitted the document, but it remains to be seen whether the SEC will object.
The inclusion of staking would make the funds even more attractive to investors, as they would offer not only exposure to the ETH price but also the opportunity to earn passive returns.
XRP, on the other hand, is still awaiting a spot ETF . Some applications have been delayed. In early June, the SEC postponed its decision until October on the proposals submitted by Franklin Templeton for XRP funds and Solana. Another key date is July 25. The regulator will have to rule on the proposals submitted by REX Shares and Osprey.
Following the success of spot ETFs on Bitcoin and Ethereum, which have already attracted tens of billions in inflows, a potential spot fund on XRP could act as a catalyst and push the token above $5.
Considering that XRP's market cap is half that of Ethereum, the influx of institutional capital could have an even stronger impact on its price.
Regulation also plays its part
Flows into ETF investment products aren't the only factors to watch. Regulation will also play a crucial role in the growth of both altcoins.
For Ethereum, a clearer regulatory framework could accelerate the tokenization of real-world assets, foster the development of DeFi applications connected to Web2, and stimulate the creation of new investment tools.
It's also an important factor for XRP's development. It would allow it to launch its RLUSD stablecoin in more countries.
Ripple has already obtained a license to operate in the United Arab Emirates and has now applied for one to operate in Europe under the criteria established by the MiCA regulation.
But above all, a clear regulatory framework would strengthen the role of XRPL (XRP Ledger), the layer 1 developed by Ripple, as an infrastructure for cross-border payments, both for the private sector and for institutions.
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