If the pending application is ultimately approved by the U.S. Securities and Exchange Commission (SEC), the XRP ETF will definitely be a huge positive for the XRP price. Several crypto analysts are considering how the price of the cryptocurrency could rise given that the ETF attracts more institutional investors to the XRP ecosystem.
XRP price could reach $1,000 in ETF
Cryptocurrency analysts like BarriC have suggested that if the SEC approves the XRP ETF, the cryptocurrency price could rise to $1,000. The analyst cited the success of Bitcoin ETFs to explain why he is confident that the XRP price can reach such an ambitious price target within the next five to 10 years. BarriC mentioned how new capital flows into the XRP ecosystem through these funds, leading to massive price increases.
Cryptocurrency analyst CryptoTank also claimed that XRP price could reach $1,000 thanks to these potential ETFs. The analyst focused on how many XRP tokens asset managers such as Bitwise and Canary Capital could hold for their respective XRP ETFs. In line with this, he believes there will be a supply shock as these asset managers accumulate more tokens for their funds.
For context, SoSoValue data shows that the Spot Bitcoin ETF holds $58.66 billion worth of BTC in net assets and the Spot Ethereum ETF holds $6.74 billion worth of ETH in net assets. . Therefore, XRP ETFs could witness some of the demand for spot BTC and ETH ETFs, holding millions of dollars of XRP as their net assets.
In the short term, it will rise to the current ATH
In the short term, XRP price may reach the current high (ATH) of $3.84. This is possible considering that Bitcoin prices soared to all-time highs shortly after the Spot Bitcoin ETF launched. Although ETH prices have not reached all-time highs since the launch of the Spot Ethereum ETF, it is worth mentioning that XRP will not face the same selling pressure that ETH faces thanks to the Grayscale ETH ETF.
Grayscale has not yet filed to convert the Grayscale XRP Trust into an XRP ETF, so if the SEC approves Bitwise and Canary Capital’s application today, there will be no selling pressure. Additionally, Grayscale XRP Trust only has approximately $2.1 million in assets under management (AuM). Therefore, the XRP ETF is totally bullish on cryptocurrencies.
Meanwhile, the focus remains on the SEC Ripple lawsuit, as developments in the case could determine how quickly the SEC can approve XRP ETFs. Former SEC official Mark Fagel said the US SEC will challenge secondary sales of XRP. This is positive for the XRP price as it confirms that the commission agrees with Judge Annalisa Torres’ ruling that cryptocurrencies themselves are not securities.
The only basis on which the European Commission can deny a pending application is if it alleges that XRP is a security. However, if the SEC does not object, this could pave the way for Bitwise and Canary Capital to launch an ETF.
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Boluwatife Adeyemi
Boluwatife Adeyemi is an experienced cryptocurrency news writer and editor who has covered topics spanning DeFi, NFTs, smart contracts, blockchain interoperability, and more, among others. Boluwatife has a knack for simplifying the most technical concepts and making them easier for crypto beginners to understand. Outside of writing, he is an avid basketball fan and part-time enthusiast.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
