- NAV benchmarks for BTC and ETH ETFs underpin the forecast.
- SEC’s remaining deadline for XRP ETF approval is 12 October.
- Polymarket information reveals a 79% likelihood of approval by year-end.
Anticipation over an XRP exchange-traded fund (ETF) is constructing within the crypto sector as analysts weigh up potential inflows, market impacts, and regulatory dynamics.
Whereas rumours and delays have formed a lot of the current dialog, data-driven forecasts from key establishments now provide a clearer image.
Standard Chartered Financial institution initiatives {that a} US-listed XRP spot ETF might appeal to between $4.4 billion and $8.3 billion in inflows inside its first yr, based mostly on internet asset worth benchmarks seen in present Bitcoin and Ethereum ETFs.
This projection, whereas optimistic, comes with warning from others available in the market.
Standard Chartered bases its projection on ETF benchmarks
Standard Chartered’s head of digital property analysis, Geoff Kendrick, mentioned NAV-to-market-cap ratios from already accepted US spot ETFs have been used to mannequin potential XRP ETF inflows.
Bitcoin and Ethereum spot ETFs at the moment present NAVs of round 6% and three% of their respective market caps.
Making use of these ratios to XRP’s market capitalisation leads to a $4.4 billion to $8.3 billion vary.
Kendrick highlighted information from Bitwise ETPs in Europe, the place XRP, Solana, and Litecoin commerce alongside BTC and ETH.
He famous that altcoins account for a higher share of ETP NAV relative to their market caps, though this may occasionally replicate the decrease variety of merchandise obtainable for altcoins in comparison with Bitcoin and Ethereum.
XRP value forecast revised amid ETF optimism
Based mostly on anticipated ETF inflows, Standard Chartered forecasts a major XRP value improve.
The financial institution expects XRP to rise to $5.50 by the top of 2025 and attain $8.00 by 2026.
The goal for 2029 is ready at $12.25.
This forecast assumes XRP ETF approval and a common continuation of development in digital asset funding autos.
For comparability, Kendrick famous that Bitcoin might attain $120,000 in Q2 2025, $200,000 by the top of the yr, and $500,000 by 2028.
XRP is predicted to maintain tempo, albeit with decrease general adoption and inflation variations.
XRP’s present inflation fee stands at 6%, in comparison with Bitcoin’s 0.8%.
Bitfinex analysts subject cautious counterpoint
Regardless of bullish projections, not all market observers are satisfied that XRP ETFs would generate the identical pleasure as Bitcoin merchandise.
Analysts from crypto alternate Bitfinex argue that investor curiosity could also be unfold skinny throughout a rising listing of altcoin ETFs.
As such, XRP may not see inflows corresponding to Bitcoin, even when accepted.
Their warning displays broader considerations about ETF market saturation and regulatory readability.
Whereas Bitcoin enjoys authorized readability as a commodity, XRP has confronted classification points and authorized disputes which will affect investor confidence.
Timeline for XRP ETF approval stays unsure
A number of monetary corporations, together with Grayscale, WisdomTree, Bitwise, Canary, and 21Shares have filed for XRP ETFs with the Securities and Change Fee.
Bitwise’s software was formally acknowledged on 18 February, setting a most deadline of 240 days, or 12 October, for a remaining choice.
This mirrors the timeline utilized to Bitcoin spot ETFs earlier in 2024.
Nevertheless, different altcoin ETF purposes resembling these for Solana and Litecoin might impression when an XRP choice is made.
Based on Kendrick, Litecoin could also be prioritised given its similarity to Bitcoin and its historic therapy as a commodity.
Polymarket information reveals that as of now, the likelihood of XRP ETF approval by 31 July is 39%, rising to 79% by the top of the yr.
Analysts together with Bloomberg’s Eric Balchunas counsel Litecoin may very well be the primary amongst altcoins to safe approval, adopted by HBAR and ultimately XRP and Solana, which face unresolved safety classification challenges.
