Skipper, an XRP community figure, recently shared a video commentary where he explained why an XRP ETF could completely change XRP’s outlook.
According to the video, once the U.S. Securities and Exchange Commission (SEC) approves an XRP ETF, the market will enter a new phase led by strong institutional demand. The commentary comes as anticipation builds for the launch of the first set of spot XRP ETF products.
Why an XRP ETF Could Improve XRP’s Value
Skipper said that the SEC approval would allow for Wall Street to start buying XRP. Notably, he argued that big financial firms would not ignore a global payments asset still trading under $10. According to him, ETF demand would quickly soak up available XRP, leading to a supply crunch that could move prices higher.
Meanwhile, the pundit also called attention to XRP’s deflationary nature, noting that every transaction on the XRP Ledger destroys a small amount of the token. Importantly, this steady burn reduces the total supply over time.
Skipper pointed out that, unlike Bitcoin, which maintains a fixed number of tokens, XRP’s supply keeps shrinking with use. This gives it a built-in mechanism to grow more valuable as adoption increases.
Speaking further, he spotlighted Ripple’s U.S. dollar-backed stablecoin, RLUSD. Skipper said RLUSD is a major part of Ripple’s broader ecosystem, which could drive more liquidity and transaction volume through the XRPL.
He explained that as RLUSD adoption grows, more transactions occur, which means more XRP burns and a lower supply. Meanwhile, lower supply, combined with ETF-driven demand, could set the stage for a sharp price surge.
He also highlighted early data that supports this trend. In just six months, RLUSD reached half a billion dollars in circulation, marking a 604% increase and ranking as the second-fastest-growing stablecoin in the world. He said this growth shows that Ripple has only begun to scale its stablecoin initiative.
Ripple Didn’t Need to Launch RLUSD to Succeed
Skipper added that Ripple never had to create RLUSD to succeed. The company already enabled cross-border payments using other stablecoins and XRP.
However, he explained that Ripple chose to develop its own stablecoin to control how value moves across the XRPL. Essentially, Ripple can manage the flow of funds, improve transaction speed, and capture more value for the XRP ecosystem by owning the stablecoin layer.
He emphasized that this gives Ripple an advantage. When it dictates how billions of dollars move across the network, Ripple will be able to boost efficiency and increase XRP’s relevance.
According to him, the company’s ultimate goal is to redesign the financial plumbing of the modern economy. Skipper suggested that once investors and institutions realize this, demand for XRP will grow exponentially.
Updates on XRP ETF Filings
Meanwhile, excitement around XRP ETFs continues to build. As of Nov. 4, the Depository Trust & Clearing Corporation (DTCC) listed nine XRP ETFs, a mix of spot-based and futures-based products. Four of the spot ETFs are waiting to launch. Most recently, the DTCC also listed Franklin Templeton’s spot product.
Also, major firms are moving to launch. Specifically, Canary Capital plans to launch its ETF on Nov. 13, pending Nasdaq approval, after updating its filing on Oct. 30 to remove delays. Franklin Templeton followed on Nov. 7, dropping its SEC delay clause and aiming for a late November decision. Bitwise also revised its filing.
Meanwhile, ETF analyst Nate Geraci said the first XRP ETF under the Securities Act of 1933 could launch this week. Notably, Canary Capital CEO Steven McClurg expects about $10 billion in inflows within the first month of trading.
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.
