How high can the Ripple (XRP) price rise if it introduces its own ETF?

The XRP community has been looking forward to the possible launch of its own Spot Exchange Traded Fund (ETF) for some time. Since the introduction of the first Bitcoin ETFs on the American stock exchange, crypto investors have hoped that other altcoins, such as XRP, will also receive their own funds.

Investors are optimistic and think that such a fund can have a major influence on the price of XRP. But how high can the price actually rise?

Possible Impact of an XRP ETF

To understand the possible impact of an XRP ETF on the price of the altcoin, it makes sense to look at the success of the Bitcoin ETFs. In January, 11 different Bitcoin ETFs were launched, attracting more than $17 billion in new capital. These funds are now among the most successful ETFs in the US market.

Comparison with Bitcoin ETFs

Although an XRP ETF is expected to attract less capital than the Bitcoin ETFs, because XRP is less popular than Bitcoin, it can still have a significant impact. Suppose the XRP ETFs attract 50% of the capital of the Bitcoin funds, this would amount to an inflow of approximately $8.8 billion. Considering XRP’s current market value, which is around $30 billion, this would be a significant boost for the altcoin.

Expected Impact on the XRP Price

Analysts often use a 1-to-10 ratio to determine the impact of investments on the market capitalization of assets. This means that an inflow of $8.8 billion could increase the market value of XRP by almost $90 billion. This could increase XRP’s total market capitalization to $120 billion, which would represent a fourfold increase from current levels. In that case, the price of XRP could rise above $2.