Analyst Zach Rector recently presented a case for how a $5 billion inflow into XRP via ETFs could drive its price beyond even the $7 level.
Among the key drivers of this outlook are the upcoming Federal Reserve rate cuts and the anticipated launch of XRP ETFs.
Specifically, Rector cited data showing that the odds of a September rate cut have surged to 90%, with Goldman Sachs predicting three consecutive 25-basis-point cuts starting this fall. He expects the easing monetary environment to inject liquidity into the markets, benefiting XRP.
Notably, the expected rate cut would come at a time when XRP spot ETFs may attain SEC approval, creating a more fertile ground for a price surge. The performance of Bitcoin and Ethereum amid ETF inflows continues to fuel this perspective.
$5 Billion Inflows Could Propel XRP Above $7
Currently trading just above $3, Rector argued that XRP could experience a dramatic price surge if it captures even a fraction of the inflows seen by Ethereum ETFs.
Notably, Ethereum funds attracted $5.4 billion in inflows in July alone. Bitwise CIO Matt Hougan highlighted this figure in a recent tweet, drawing comparisons to Bitcoin. He noted that Ethereum is only about 20% the size of Bitcoin, making the scale of those inflows especially significant.
He suggested that if Bitcoin ETFs pulled in $27 billion in a single month, the price implications would be pronounced—emphasizing just how impactful those Ethereum flows really are. Indeed, ETH saw its best performance of the year in July as a result of those inflows.
Meanwhile, Rector argued that XRP may benefit even more from such massive ETF investments. He explained that if XRP ETFs launch this October and attracted a similar $5 billion, XRP’s market cap could increase by $250 billion. This would represent a 138% price gain, pushing XRP past $7 per token.
Rector also stated that this projection is conservative, based on a 50x market cap multiplier. He noted that this multiplier is significantly lower than some of the more optimistic estimates he previously discussed.
$10 to $20 XRP Within Reach
At the same time, Rector remains confident that XRP could reach $10 to $20 within a year of ETF approval, assuming inflows are on par with or exceed Ethereum’s recent figures.
Adding to the bullish outlook is the anticipated conclusion of the SEC’s lawsuit against Ripple. Rector said that once retail investors realize the Ripple case is finally over, optimism will fuel the next leg of the XRP rally.
Notably, the SEC and Ripple are expected to drop their appeals by mid-August. Former SEC lawyer Marc Fagel confirmed that the appeal process is nearing completion.
Many have highlighted August 15 as a potential date for an official resolution as the SEC and Ripple are to provide a status update to the appeals court by then.
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