Despite years of rapid development, the cryptocurrency sector continues to surprise. Bitcoin has paved the way for many innovative projects, and now it is XRP's turn to be in the spotlight. JPMorgan Chase predicts that an XRP-based spot ETF could attract up to $8 billion in inflows by 2025.
JPMorgan’s optimistic outlook on XRP spot ETF
JPMorgan analysts pointed out that XRP-based spot ETFs are expected to attract $3 billion to $8 billion in investment. This estimate is partly based on the success of Bitcoin and Ethereum. For example, Bitcoin ETFs account for about 8% of Bitcoin's market value, which shows that institutional investors are highly interested in such regulated products.
With the development of Bitcoin and Ethereum ETFs, JPMorgan believes XRP has tremendous potential. Since the first cryptocurrency ETF was introduced, the public has gradually become accustomed to investing in cryptocurrencies through traditional stock market products, and this trend has also increased confidence in the XRP spot ETF.
Ripple and industry reactions
Ripple's head Monica Long expressed confidence in the company's future, believing that XRP meets all the conditions to follow in the footsteps of Bitcoin and Ethereum to obtain its own ETF. Several large investment firms, including Bitwise and WisdomTree, are working to launch XRP ETF proposals and are expected to receive regulatory approval by the end of 2025.
Growth of ETFs and changes in the regulatory environment
With the diversification of cryptocurrency-related financial products, investors are seeking new investment opportunities. As an important member of the ecosystem, XRP is expected to become a strong alternative to Bitcoin. The appeal of these regulated products lies in their convenient access and the credibility brought by regulatory approval.
The U.S. Securities and Exchange Commission (SEC) is often seen as a barrier to the market due to its strict stance. However, with the departure of Gary Gensler and the arrival of a new leadership that is more supportive of cryptocurrencies, it is expected that SEC policies will be adjusted, potentially accelerating the approval process for cryptocurrency ETFs, including XRP. While there is speculation that Litecoin or Solana may receive ETF approval first, Nate Geraci estimates the probability of XRP spot ETF approval before 2025 to be 59%.
On the Polymarket platform, half of the users expect the final decision to be made by July 31 of this year. Meanwhile, JPMorgan's CEO even jokingly compared Bitcoin to tobacco, suggesting the diversity and volatility of the cryptocurrency space.$XRP