Crypto analyst Chad has revealed two scenarios that could unfold for XRP amid the recent crypto market downtrend. The analyst also stated that XRP investors would win, regardless of which scenario played out.
Two Scenarios That Could Play Out For XRP At The Moment
In an X post, Chad stated that there are two options, with the first being that the XRP price stays the same as today, and then the ETFs buy the entire circulation supply in exactly one year. Meanwhile, the second option is that the XRP price rises dramatically, and the acquisition of XRP declines because the altcoin becomes more expensive to buy.
The crypto analyst declared that XRP holders will win either way. He indicated that the XRP price would surge drastically if ETFs were to accumulate significantly. Notably, the first ‘33 Act XRP ETF just launched last week and has recorded significant net inflows. SoSo Value data shows that the Canary XRP fund took in $245 million on the first day and $243 million on the second day of trading.
Meanwhile, other pending XRP ETFs are expected to launch soon. The first among them is Franklin Templeton, which is likely to launch this week after earlier filing an updated S-1, which removed the delay amendment. Bitwise and 21Shares could also launch this week, following a similar move.
As Chad suggested, these XRP ETFs are bullish for the XRP price, considering the amount of fresh capital that could flow into the altcoin’s ecosystem through these funds. Institutional investors have already shown huge interest in XRP, as evidenced by the fact that Canary’s fund has had the best launch this year in terms of trading volume and inflows.
Analyst Shares ETFs Impact Launch Model
In another X post, Chad shared the XRP ETFs launch impact model, showing how high the XRP price could reach thanks to these funds. The model showed that 20 ETFs seeded at $45 million each, with a total inflow of $900 million, would absorb 1.5% of the altcoin’s supply and could spark an XRP price surge to between $10 and $17 within 30 days. Meanwhile, the price could rally to between $13 and $24 within 60 days based on the model.
Chad also revealed how the XRP ETFs could spark a supply shock for XRP. He noted that the OTC desks will initially run cover for the ETFs, but they will inevitably have to buy on public exchanges at some point. The analyst revealed that the XRP supply on exchanges is 2.8 billion, an amount that he expects the ETFs should be able to buy up.
At the time of writing, the XRP price is trading at around $2.25, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pxfuel, chart from Tradingview.com
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