The cryptocurrency market is closely watching as an XRP ETFs move closer to launch. With Wall Street recognition, real-world use, and better approval odds, experts believe the XRP ETF could be one of the most successful crypto ETF launches yet.
Expert Expectations Rise For XRP ETF Launch
Canary Capital has shared some of the boldest expectations for the XRP product. Steven McClurg, a leading executive at the firm, states that XRP is now the second-most recognized cryptocurrency on Wall Street, after Bitcoin. The Wall Street status is essential because institutional investors would often prefer assets with which they are already familiar and have a clear understanding.
McClurg, the CEO of Canary Capital, predicts that XRP ETFs could generate $5 billion in inflows within the first 30 days. That is more than the $3.26 billion Bitcoin ETFs got in their first month. It is also much stronger than Ethereum ETFs, which had a very weak start. McClurg says this shows the trust and interest that professional investors already have in XRP.
The strength of XRP in the EFT market, he explains, comes from its real-world utility. Financial institutions and banks have utilized the digital asset for a long time to transfer money across countries faster and at lower costs. In this context, he notes that XRP differs from many digital assets that serve solely speculative purposes. Because the token already integrates into parts of the existing payment system, experts argue that investors will view it as a more reliable option for long-term exposure, backed by an ETF.
Expert Points To Catalysts For XRP ETF Success
Another reason the expert is hopeful is the strong XRP community, also known as the “XRP Army.” This community could generate substantial trading volumes immediately after launch. Its strength may also protect the ETF from problems that other products have faced.
For example, Ethereum ETFs had a very tough start in July 2024. They lost $483 million in the first month alone. Significant withdrawals from the Grayscale Ethereum Trust exacerbated the problem, and investor confidence declined. The Canary CEO believes that the XRP ETF will perform better due to its real-world utility, rather than speculation.
Regulation is also moving in a positive direction. The chances of approval for the XRP ETF have gone up from 86% to 87%. While it may not seem like a significant leap, experts believe it is still progress and anticipate that more assets, such as Solana, Hedera, and Litecoin, could receive ETF approval by the end of 2025.
Futures-based XRP products already exist, which makes it easier for regulators to approve a spot ETF. With strong community support and rising approval chances, the XRP ETF could outperform earlier crypto ETF products.
Featured image from DALL.E, chart from TradingView.com
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