XRP advocate Jake Claver, Managing Director of Digital Ascension Group, recently weighed in on how XRP’s price could react to the launch of spot ETFs.
In a recent disclosure, Claver expressed his anticipation that XRP spot ETFs could launch this year. Notably, the SEC has postponed decisions on filings from firms like Grayscale, Franklin, and WisdomTree as predicted.
However, the broader expectation is that these products will launch in the last quarter of 2025, specifically around October, when the SEC reaches a final decision deadline. With the products going live, Claver noted he expects price appreciation for XRP. He drew parallels to what happened with Bitcoin.
XRP Could Follow Bitcoin’s Path
Notably, Bitcoin spot ETFs launched in January 2024, when Bitcoin was trading around $45K. The initial hype led to a brief “sell the news” event, where Bitcoin dipped shortly after the launch.
However, a historic price rally followed, with Bitcoin peaking above $73K ahead of its April 2024 halving. This marked the first time BTC claimed a new ATH before the halving. Bitcoin went on to surpass the $100K level by the end of the year as Bitcoin ETFs accumulated over 1 million BTC tokens, with BlackRock leading the charge.
Claver believes a similar scenario could play out for XRP. He noted that a glimpse of this occurred in late 2024 when XRP’s price broke out massively to the upside for the first time in years.
The price movement coincided with major developments, including repeated news of asset managers filing to list XRP ETFs. Bitwise and Canary Capital were among the first movers, followed shortly after by others like Grayscale and WisdomTree.
While a cooldown from the frenzy brought XRP’s price below $2 multiple times, the coin has largely remained stable around the $2 mark. Proponents believe that an official ETF approval announcement would bring fresh momentum for XRP.
Latest on XRP ETFs
The latest development from the SEC concerning XRP ETFs is that the regulator has initiated proceedings to decide whether to approve the WisdomTree XRP Fund. In a May 27 notice, the SEC stated it is evaluating whether the proposal complies with statutory laws. Accordingly, the agency has called on the public to provide input.
The public has 21 days from the date of publication in the Federal Register to submit comments, and 35 days for rebuttals.
While filings from major industry names are already present, BlackRock and Fidelity, which are leaders in Bitcoin spot ETFs, are notably absent. As a result, the XRP community is widely anticipating their filings. Their involvement could be a game-changer for XRP, similar to their impact on Bitcoin.
How High Could XRP Go?
Speculation around XRP’s potential price performance following the ultimate arrival of ETFs has been widespread.
One theory projects XRP’s potential based on attracting just a portion of Bitcoin ETF inflows, should U.S. approval occur.
Since January 2024, Bitcoin ETFs have seen about $40 billion in inflows. If XRP ETFs attract 15% of that ($6 billion), and a 100x inflow-to-valuation multiplier is applied, XRP’s market cap could rise by $600 billion to reach $715 billion. Specifically, this would push the price to $12, a 450% increase from its current $2.22.
Meanwhile, analyst Zach Rector predicts XRP could reach $15 if XRP ETFs attract strong inflows. Notably, he used a more aggressive market cap multiplier model.
Rector bases his forecast on JPMorgan’s estimate that XRP ETFs could see $4–$8 billion in inflows during their first year. Using the lower $4 billion figure and a 200x market cap multiplier, he estimates an $800 billion boost in XRP’s valuation. Adding this to XRP’s current $125 billion market cap brings it to $925 billion.
While these forecasts sound promising, they are based on hypothetical scenarios that may not materialize.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
