An XRP community figure has suggested that the XRP price would have to be “extremely high” to maintain the trend of consistent inflows from XRP ETFs.
The introduction of XRP ETFs has rejuvenated bullish discussions surrounding XRP price action, especially considering these products’ early success. For context, Canary Capital led the charge with the launch of its XRPC fund on Nov. 13, which attracted $245 million on its debut.
XRP ETFs Seeing Early Successes
Bitwise followed a week later with its ETF product dubbed “XRP,” with an impressive $105 million inflow on its first trading day. Meanwhile, Grayscale and Franklin Templeton debuted GXRP and XRPZ on Nov. 24. While GXRP saw $67.36 million in inflows, XRPZ recorded $62.59 million.
Since then, these four funds combined have seen reduced netflows. In the latest update, the ETFs recorded $21.81 million in net inflows on Nov. 26, lower than the $35.41 million they witnessed the day before. However, despite the drop in netflows, what if they observed this same reduced $21 million for up to a year?
How Much XRP These Funds Could Gulp in a Year
Notably, the XRP community is awaiting the approval of two more spot XRP ETFs, one from 21Shares and another from CoinShares. Meanwhile, market commentator Chad Steingraber proposed that if the number of ETFs rose to seven and these seven saw persistent inflows, they could drain the circulating XRP supply.
Steingraber analyzed how these funds could gulp XRP supply, but his numbers were largely imprecise due to new data. As a result, we provided another assessment with the latest figures. Specifically, if the two pending funds follow a similar trend as the existing ones, the latest $21.8 million inflow figure could rise to around $32.7 million worth of inflows a day from all six products.
With this, the ETFs will attract about $163.5 million worth of inflows within a five-day trading week. At this pace, the inflows would surge to $654 million in a month. For perspective, with the first product emerging on Nov. 13, the existing four products have attracted $643 million worth of inflows in just two weeks. However, this is largely due to their large first-day flows.
Meanwhile, with $654 million in capital within a month, the six products could record about $7.484 billion in capital influx in a year. Considering the current XRP price of $2.19 per token, this $7.484 billion inflow would gulp 3.583 billion XRP, representing nearly 6% of XRP’s current circulating supply.
“XRP Price Must be Extremely High”
However, Steingraber suggested that in less than a year, the ETFs may drain the entire XRP supply in circulation if the products followed the figures he presented instead. Nonetheless, he suggested that this could extend to a year on a conservative assumption.
He then factored in possible ETF products from larger asset managers like BlackRock, which could lead to higher inflow figures. According to Steingraber, the only factor that could stop the products from draining the XRP supply at this pace is for the XRP price to be extremely high.
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.
