- JPMorgan has forecasted that an XRP exchange-traded fund could attract significant investments, with inflows ranging from $3 billion to $8 billion based on the success of Bitcoin ETFs.
- Industry leaders, such as Nate Geraci, predict that an XRP ETF will end up getting approved this year under Trump’s administration and Paul Atkins as SEC chair.
The digital asset market has witnessed a growing interest from traditional financial institutions, and JPMorgan is one of the latest to highlight the potential of XRP-based exchange-traded funds (ETFs).
According to JPMorgan’s recent prediction, an XRP ETF could attract as much as $8 billion in investments. This optimistic prediction is based on the success of Bitcoin and Ethereum ETFs, which have seen substantial inflows since their launches in January 2024 and July, respectively.
According to the post on X, Bitcoin ETFs, with $108 billion in assets under management, makeup about 6% of Bitcoin’s total market capitalization, which stands at $1.85 trillion. Ethereum ETFs, although smaller, have gained traction with $12 billion in assets, representing a 3% penetration rate of Ethereum’s market cap. The success of these products sets a precedent for other cryptocurrencies, with XRP being one of the potential candidates.
Ripple’s Advocacy for XRP ETF Launch
As we reported, Ripple President Monica Long disclosed in an interview with Bloomberg that the growing number of applications signals positive momentum for XRP within the traditional financial sector. Multiple firms, such as Canary Capital, Bitwise, 21Shares, and WisdomTree, are actively filing for XRP ETFs. Additionally, Ripple CEO Brad Garlinghouse has been vocal about XRP’s increasing adoption in traditional finance, stating that the launch of an XRP ETF is not just possible but inevitable.
However, the approval process for an XRP ETF remains uncertain due to ongoing legal battles between Ripple and the U.S. Securities and Exchange Commission (SEC) regarding XRP’s legal status. Despite these regulatory hurdles, crypto advocate Jeremy Hogan suggests that the SEC case could reach a resolution by April or May 2025. Furthermore, the resignation of SEC chair Gary Gensler could help speed up the process.
Bloomberg analysts Eric Balchunas and James Seyffart have noted that the approval of ETFs for assets such as Litecoin (LTC), Solana (SOL), and Hedera (HBAR) may come more quickly due to their classification as commodities, in contrast to the ongoing legal issues surrounding XRP.
Should the XRP ETF be approved, it could have significant implications for the price of XRP. Currently trading at $2.56, XRP has experienced a 7.42% increase in the last 24 hours. Analysts predict that if the ETF is approved, XRP’s price could surge, with some expecting it to reach as high as $3.66, provided it breaks through key resistance levels.
