The potential introduction of spot XRP Exchange-Traded Funds (ETFs) in the U.S. could significantly influence the token’s valuation

This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not represent Times Tabloid's opinion.

The introduction of spot XRP Exchange-Traded Funds (ETFs) in the U.S. could significantly influence the token’s valuation, especially if these products attract even a portion of the capital that has flowed into Bitcoin ETFs.

As regulatory clarity around XRP continues to improve, the market is increasingly optimistic about the prospects of approval. Recent updates from prediction markets such as Polymarket suggest an 80% probability that an XRP ETF will receive regulatory approval in 2025, a notable increase from 68% just a week prior. As institutional investors show growing interest, the implications for XRP’s price trajectory could be considerable.

Projected XRP Valuation Based on ETF Capital Inflows

To estimate the potential impact, it is useful to compare XRP’s prospective ETF inflows to those of Bitcoin. Since January 2024, Bitcoin ETFs have accumulated approximately $39 billion in net inflows, according to Sosovalue. If XRP-based ETFs secure just 15% of that total, it would result in around $5.85 billion entering the market.

Assuming a conservative multiplier effect of 100x on net ETF inflows, the $5.85 billion could translate into a $585 billion increase in XRP’s market capitalization. When added to its current estimated market cap of $130 billion, XRP’s total valuation would reach roughly $715 billion. With 58.44 billion tokens in circulation, this would equate to a price of approximately $12.23 per XRP, representing a roughly 450% increase from the current price of $2.22.

If XRP ETFs were to capture 30% of Bitcoin ETF inflows instead, that would bring $11.7 billion into the ecosystem. Applying the same valuation multiplier, this would generate an additional $1.17 trillion in market value. When combined with the current market cap, XRP’s valuation could reach approximately $1.3 trillion. Under these conditions, the price per token would be about $22.20, indicating a nearly 900% rise.

Progress and Setbacks in XRP ETF Development

The growing demand for an XRP ETF among institutional investors is supported by statements from key industry figures, including Bitwise CIO Matt Hougan, who confirmed that the firm is seeing considerable interest in such a product. The ETF landscape for XRP has evolved quickly over the past year.

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Teucrium Investment Advisors launched the first leveraged XRP ETF—the Teucrium 2x Long Daily XRP ETF—on April 8, providing amplified exposure to daily price movements. ProShares has also gained approval to introduce futures-based XRP ETFs, including both long and inverse versions. These instruments, however, are derivative-based and do not hold XRP directly.

While several ETF providers, including WisdomTree, 21Shares, Franklin Templeton, and Bitwise, have filed for spot XRP ETFs, none have yet received approval from the U.S. Securities and Exchange Commission. Franklin Templeton’s proposal is currently under extended review, as announced by the SEC on April 29.

Support for these efforts is bolstered by developments in regulated futures markets. CFTC-regulated XRP futures products are now offered by Bitnomial, Coinbase, and CME Group, enhancing the asset’s standing among institutional platforms.

The eventual resolution of Ripple’s legal battle with the SEC could also play an important role in the approval timeline. If a spot XRP ETF gains regulatory clearance, even modest inflows could have significant effects on the asset’s market capitalization and token price.

: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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