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HomeCrypto NewsMarketExpert Shows How XRP ETFs Could Add $1 Trillion to XRP Market Cap After Launch

Expert Shows How XRP ETFs Could Add $1 Trillion to XRP Market Cap After Launch

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An XRP community commentator has explained how XRP ETFs could boost XRP’s market cap after launch.

With the Canary Capital XRP ETF (XRPC) officially approved to go live, XRP proponents have flipped bullish. The launch, along with several other XRP ETFs expected this month, has led to new discussions about how these products could impact XRP’s price and market cap.

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Notably, community figure Zach Rector recently shared what he believes could happen once the ETFs begin trading. In his recent video commentary, he said the new ETFs could drive XRP’s market cap up by as much as $1 trillion. Rector outlined two possible outcomes: a base case and a bullish case.

In his base case, XRP could gain roughly $500 billion in market value, pushing its price into the $10 to $11 range. Meanwhile, his bullish scenario projects $1 trillion in market cap growth, which would lift XRP toward $19 or $20. 

Notably, he clarified that these estimates only account for ETF inflows and not additional demand that could come from XRP’s use in global payments and liquidity solutions.

Who Could Buy the XRP ETFs?

Rector pointed out that NASDAQ has already certified the listing for the Canary Capital XRP ETF, and trading would begin at market open. He added that although he doesn’t plan to buy the XRP ETFs himself, many institutional and retirement investors will. 

To these investors, ETFs remain one of the few ways to gain regulated exposure to crypto assets. He also highlighted that major university endowments and large investment funds could soon start buying XRP ETFs just as they have done with Bitcoin and Ethereum.

Possible $5 to $10B Inflows for XRP ETFs

According to Rector, this level of access could attract billions of dollars in new capital to XRP. He expects between $5 and $10 billion in inflows within the first year, though he said that amount might arrive much faster, possibly within the first month. Notably, this aligns with projections from Canary Capital CEO Steven McClurg.

Rector supported a disclaimer that investors should stay realistic and not expect sudden price surges, noting that ETF issuers must buy only a small amount of XRP before launch as “seed capital.” Once trading begins, issuers will then need to purchase larger quantities on the open market to meet investor demand.

He compared the upcoming XRP ETF to the recent Bitwise Solana ETF launch, which started with about $200 million in seed capital and generated between $200 million and $400 million in day-one trading volume. He said he expects a similar level of excitement and trading volume when the Canary Capital XRP ETF launches.

The pundit also clarified that ETF issuers did not buy XRP at lower prices in advance, as some investors speculated. Instead, they will have to buy XRP after launch, which could drive demand sharply higher. Rector called this the “multiplier effect,” where relatively small inflows into ETFs can result in outsized gains in an asset’s overall market cap.

Rector Points to Bitcoin ETF Impact

To support his forecast, the pundit highlighted Bitcoin’s performance after its spot ETFs went live. Specifically, Bitcoin’s market cap grew from below $800 billion to around $2.5 trillion by October 2025, an increase of $1.76 trillion. This surge came from roughly $62 billion in ETF inflows, which created about a 28x multiplier effect.

Rector believes XRP could see an even larger multiplier, ranging from 100x to 200x, due to its smaller market size and greater price flexibility. 

Based on his math, $5 to $10 billion in inflows could easily add $500 billion to $1 trillion in value to XRP’s market cap, pushing prices to between $10 and $19. He estimated this growth could happen within months or over the next year and a half, depending on how quickly the inflows arrive.

No Guarantees

However, while Rector remains confident about XRP’s upside, there’s no guarantee the asset will follow Bitcoin’s path. 

For instance, when Ethereum ETFs launched in July 2024, Ethereum’s market cap stood at $412 billion and only rose to $598 billion by August 2025, a $186 billion increase in a year. Today, Ethereum’s market cap sits around $425 billion, just $13 billion higher than before the ETF debut, despite the products seeing $13 billion in netflows.

Essentially, while XRP ETFs could deliver major inflows and price gains, the results will depend on how the market reacts. Investors may see a significant boost, but they should also keep in mind that not every ETF launch produces the same impact.

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.

Author

Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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