Canary Capital CEO remains confident that the XRP ETFs will be an instant success, proposing possible outperformance of the Ethereum ETF.
Steve McClurg has some bold predictions for the US XRP spot ETF. In a Friday interview, he reaffirmed his projection that the funds tracking the third-largest cryptocurrency by market cap would attract $5 billion in inflows in their first month of launch.
XRP ETFs to Attract $5B in First Month
The Bitcoin spot ETFs recorded a net inflow of $1.46 billion in January 2024, according to data from Sosovaliue. While some may argue that it was not a full month’s inflow, as the ETFs started trading on January 11, 2024, the ETFs had a cumulative net inflow of $3.26 billion as of February 12, 2024, a month later.
On the other hand, the Ethereum spot ETFs saw a net outflow of $483 million in July 2024 and a net outflow of $5.70 million exactly one month after their debut. Notably, a considerable factor contributing to these underwhelming statistics was the outflows from the Grayscale Ethereum Trust (ETHE).
However, the Canary CEO expects the XRP spot ETFs to become the best-performing investment product once they finally launch. He suggested that the ETFs would outdo both the Bitcoin and Ethereum spot ETFs with a $5 billion inflow in the first month.
Meanwhile, the comments come as the chances of an XRP ETF in 2025 continue to rise. Barron shared that the chances of their launch this year stood at 86%—currently at 87%—suggesting increased confidence among market users.
McClurg agrees with this optimistic outlook, suggesting that XRP, along with other assets like HBAR, Litecoin, and Solana, will launch before the end of 2025. He also added that the existence of the XRP futures products further enhances their likelihood of entering the market before year end.
XRP to Outperform Ethereum ETFs
Meanwhile, the Canary Capital CEO went further to predict that the XRP ETFs would outperform the Ethereum spot ETFs, citing several reasons. First, he noted that aside from Bitcoin, XRP is the most popular token on Wall Street, a factor that would drive its instant ETF success.
Notably, the XRP community is one of the most vibrant in the crypto space, and demand for the XRPL native token is massive. Teucrium CEO Sal Gilbertie attested to this in a recent interview, noting that they call it the XRP Army for a reason.
Additionally, McClurg believes that XRP ETFs would outperform their Ethereum counterparts simply from a “pure financial services” standpoint. This aligns with his earlier statement that XRP has a clear and somewhat distinct use case in the payment industry.
While some argue that XRP has a contender, the token is a leader in the cross-border settlement scene. Its clear financial utility could ensure that an XRP-focused investment vehicle attracts better inflows than Ethereum did.
Interestingly, an earlier report highlighted that the price of XRP would see notable upside if XRP ETFs record the projected $5 billion inflow. Specifically, it could reach $26 per coin, with a market cap of $1.36 trillion.
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.
