Expert: XRP ETFs could add $1 trillion in market cap

Interest among investors is growing with the arrival of the first spot XRP ETF on the American market. However, there is one big question whether the introduction of these products can actually cause a huge flow of capital into XRP, as some analysts expect.

Spot XRP ETF ready to launch on NASDAQ

Interest was reignited after the Canary Capital spot

According to analyst Zach Rector, the influx that follows could be significant. In his recent video, he explains that the first phase of ETF trading may provide a strong boost for XRP.

Rector outlines two scenarios. In his base case, he sees approximately $500 billion in additional market value created. That would be enough to push XRP towards $10 to $11. In a more optimistic scenario, he even mentions growth of $1 trillion, which, according to his calculations, would push the price to $19 to $20.

He indicates that his expectation only looks at ETF inflows. Possible additional demand due to the use of XRP in international payments is not included in his calculations.

Bitcoin ETFs serve as an example of possible growth

According to Rector, institutional parties such as pension funds and university funds should mainly look at the regulated structure of an ETF. It offers them a way to gain exposure to crypto without having to manage tokens themselves. This could quickly increase access to XRP for a new group of investors.

Rector refers to previous examples. The launch of spot Bitcoin (BTC) ETFs, he said, generated inflows of about $62 billion, after which Bitcoin’s market cap grew from just under $800 billion to about $2 trillion. Moreover, the US Bitcoin ETFs recorded a net inflow of $524 million yesterday.

Yet success is not guaranteed. The Ethereum (ETH) ETFs have attracted $13 billion since their launch, but Ethereum’s market cap is now almost at the same level as before its introduction.

The coming months will show whether XRP can gain a comparable boost to Bitcoin or whether it will end up in the same camp as Ethereum, where the impact was limited. The analyst’s predictions remain very daring.