The XRP price could reach new heights if XRP ETFs attract the amount of capital inflows predicted by the Canary Capital CEO, Steven McClurg.
McClurg made his forecast in a recent podcast episode. Specifically, his firm is one of the applicants seeking approval to launch the product, and he believes the ETFs could attract $5 billion in inflows during their first month.
Why the Canary Capital CEO Believes XRP ETFs Could Perform Well
Notably, speaking to host Paul Barron, the Canary Capital CEO explained why he expects XRP ETFs to outshine Ethereum ETFs and why that first month could witness massive inflows.
For the first reason, McClurg highlighted that Ethereum holders have an alternative to ETFs: they can stake their ETH directly through exchanges or on-chain, earning 2% to 3% yields.
Because of this, many crypto-savvy investors might prefer to hold ETH themselves instead of buying an ETF that offers no staking rewards. XRP doesn’t have staking, so ETF buyers wouldn’t lose out on any extra returns by investing through an ETF instead of holding directly.
He also called attention to XRP’s dominance in the payment category. While Ethereum faces competition from other smart contract platforms, XRP has few direct rivals. McClurg argued that this leadership position keeps XRP ahead of the pack and more attractive to investors.
The third factor he pointed to was demand. Notably, XRP has one of the most active communities in crypto, with millions of dedicated supporters worldwide. McClurg believes this level of interest could trigger massive ETF demand, helping the $5 billion target become a reality.
XRP Price if XRP ETFs Attract $5B Inflows
If that happens, the effect on XRP’s price could be massive due to the market cap multiplier effect. Market analyst Dom found earlier this year that just $61 million in buy pressure boosted XRP’s market cap by $16.6 billion. Interestingly, this works out to a staggering 272x market cap multiplier.
Ever wondered how much money it takes to cause a 16.6B increase in $XRP market cap?
Since I am tracking every trade on all major spot exchanges, I have the exact $ figure
61M USD. Thats the net market buying pressure we saw over the last 13 hours.
So yes, 61M USD of buy… pic.twitter.com/XDt6FMB0g9
— Dom (@traderview2) May 12, 2025
Applying that same ratio to McClurg’s $5 billion ETF inflow estimate would push XRP’s market cap up by about $1.36 trillion. With XRP currently trading at $3.15, a $186.5 billion market cap, and 59.3 billion tokens in circulation, this jump would lift the total value to roughly $1.546 trillion. At that level, XRP would trade near $26 per token.
However, to get a second opinion, we sought Google Gemini’s opinion. In response, the AI chatbot agreed that approval of XRP ETFs would trigger a wave of FOMO buying from retail and institutional investors. Gemini suggested that this sudden demand could lead to higher prices.
Nonetheless, it considered more modest multipliers of 10x and 15x for its evaluation. Under these assumptions, $5 billion in inflows would raise XRP’s market cap to between $236.5 billion and $261.5 billion, putting the price between $3.99 and $4.41.
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.
