Standard Chartered has set an $8 price target for XRP as ETF interest grows, predicting over $8 billion in first-year inflows. However, Bitfinex expresses caution, expecting limited investor demand compared to Bitcoin ETFs. The market eagerly awaits the SEC’s decisions on several ETF applications, amidst strong speculation about Ripple’s future in the crypto landscape.
As the morning sun rises, the world of cryptocurrency buzzes with anticipation regarding XRP ETFs—exchange-traded funds that have become a hot topic recently. According to Standard Chartered, there’s a bullish forecast for Ripple’s XRP, hinting at a price target of $8 amid growing market interest in these financial instruments. Yet, there’s a contrasting sentiment from Bitfinex, which voices concerns over limited demand for XRP ETFs.
Crypto analysts are all abuzz following the approval of ProShares leveraged futures XRP ETF. This move has injected optimism back into the discussion, prompting speculations about the impact it may have on Ripple’s XRP token. Notably, ETF expert Eric Balchunas recently communicated a refreshing update; he’s upped the odds for XRP ETFs to a solid 85%. Meanwhile, on social media, buzz about XRP prices potentially bouncing to as high as $12.23 or even $22.20 has emerged, signalling a mix of excitement and hope.
Currently, XRP is trading at $2.22, reflecting a slight dip of nearly 1% in the last day. Standard Chartered weighed in on the potential inflows connected with an XRP ETF. Geoff Kendrick, the bank’s head of digital assets research, revealed that while precise figures are tricky to pin down, insights from European data might be valuable. Reference to existing crypto ETPs in Europe suggests a model for understanding how XRP ETFs could perform in the future.
Kendrick’s insights are drawn from an analysis comparing Bitcoin and Ethereum to altcoins, suggesting that altcoins have been attracting a more significant share of ETP net asset value compared to their Bitcoin counterparts. He maintains that a well-positioned US spot XRP ETF could indeed harness inflows up to $8.3 billion within its inaugural year. This projection is based on current market caps, with Kendrick drawing parallels to the NAV ratios seen in existing US spot ETFs for Bitcoin and Ethereum.
On his forecasts for XRP prices, Kendrick is expecting some hefty gains, laying out a roadmap that includes an estimated $8 by 2026. This projection comes on the heels of XRP ETFs potentially being approved in the US, marking a substantial 260% increase from today’s price. His inflation analysis of XRP versus Bitcoin further supports the bullish outlook, with XRP’s inflation at 6%, compared to Bitcoin’s modest 0.8%.
However, not everyone shares this optimistic outlook. Analysts from Bitfinex express caution, warning that demand for a US-based XRP ETF might not rival the interest currently shown in Bitcoin ETFs. They suggest investors may trend towards a diversified approach, distributing their allocations across multiple crypto ETFs rather than flocking to XRP alone. This reflects a broader uncertainty looming over how altcoin ETFs will fare under regulatory scrutiny in the US.
Several notable firms, such as Grayscale and Wisdom Tree, have filed applications for XRP ETF approval, and there’s a timeline in sight. The final deadline for a ruling is set for October 12, while they could take cues from other crypto applications, including Litecoin and Solana, with Litecoin likely to lead the charge, per Kendrick’s analysis.
Insights gleaned suggest that Bitcoin’s foundational strength and evolving regulatory frameworks could heavily influence investor behaviour when it comes to altcoin ETFs. Predictions indicate an influx of cryptocurrency ETFs in the coming year, focusing initially on BTC + ETH combinations. Meanwhile, the market awaits clarity on pending applications and their approval trajectories.
In summary, the overall landscape of cryptocurrency ETFs remains dynamic and complex. Expectations meet cautious optimism, as traders navigate this evolving space amidst fluctuating investor sentiments.
