A recent analysis by financial expert Gen A (@genAbilsav) suggests that institutional demand driven by ETFs could massively drive XRP price.
His data-driven analysis highlights the potential supply shock, capital inflows, and historical trends showing that approval of an XRP ETF could significantly alter the cryptocurrency’s value and liquidity.
How the $XRP ETF Can Drive $XRP Price Higher A Data-Driven Analysis
1️⃣-Total Potential $XRP Demand from ETFs
🔸11 companies have filed for an $XRP ETF.
🔸Estimated 1 billion $XRP per ETF, totaling 11 billion $XRP .
🔸This represents 20% of the total circulating supply (55B… pic.twitter.com/ClZHsZ8xHd— gen A 🔶 (@genAbilsav) February 18, 2025
XRP ETF Demand and Market Absorption
Gen A reports that 11 companies have filed for an XRP ETF , each expected to acquire around 1 billion XRP, totaling 11 billion—about 20% of the circulating supply. This could trigger a supply shock, driving prices higher.
If only 20% of the ETF demand is filled, $11 billion in inflows could push XRP to $3.5–$5. With 50% of demand met, $27.5 billion could drive prices to $6.5–$10. If demand is fully met, a supply deficit could emerge, as $55 billion attempts to buy 20 billion XRP when only 11 billion are available, potentially sending prices to $15–$25 or higher.
Supply Shock and Market Response
If 11 billion XRP were locked within ETFs, the circulating supply would drop to 44 billion. Given that demand for XRP is expected to remain stable or increase, basic economic principles suggest that prices rise to accommodate the imbalance.
The resulting supply shock could drive out many retail investors, while driving up prices, mirroring previous ETF-induced market shifts.
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Institutional Investment and Capital Inflows
The anticipated inflow of $55 billion across all XRP ETFs represents a significant influx of institutional capital. At a pre-ETF estimated price of $2.65 per XRP, this capital would attempt to purchase over 20 billion XRP—nearly twice the amount expected to be available.
The inability to meet this demand at current prices would necessitate an increase in XRP’s market valuation, balancing demand with available supply.
Historical Comparisons and Future Price Potential
Previous ETF approvals provide insight into how XRP’s price might respond. The Bitcoin Spot ETF saw over $10 billion in inflows and an 82% increase in Bitcoin’s price. Similarly, Gold ETFs resulted in a fivefold price increase over four years.
If XRP follows Bitcoin’s trajectory, its price could rise from $2.65 to at least $4.8 in the short term. If it mirrors gold’s performance, it could reach $10–$20 in a few years.
Short-term projections suggest XRP could hit $4–$7 within a month of ETF approval, potentially rising to $10–$15 over the next year as institutional adoption grows. If it gains widespread institutional status like Bitcoin or gold, its value could reach $20–$50 or more. While speculative, these estimates follow historical trends of similar asset transformations.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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