Crypto: 8 billion for XRP ETF?

The cryptocurrency sector continues to amaze even after years of dazzling progress. Bitcoin has already paved the way for many innovative projects. Today, it’s XRP’s turn to grab the spotlight, with JPMorgan’s bold predictions predicting up to $8 billion for the XRP Spot ETF by 2025.

JPMorgan and the promise of the XRP crypto Spot ETF

JPMorgan analysts throw a spanner in the works. According to their estimates, the XRP-backed spot ETF could attract $3 billion to $8 billion in inflows.

This prediction is partly based on the success already seen in other cryptocurrencies. Bitcoin ETFs, for example, account for nearly 8% of Bitcoin’s capitalization, demonstrating institutional investors’ enthusiasm for regulated products.

Bank of America is building on the rise of Bitcoin and Ethereum ETFs and betting on the potential of XRP. Since the arrival of the first crypto ETFs, the public has gradually become accustomed to the idea of ​​investing in these assets through better-known stock market products.

So the parallel with Bitcoin is cause for optimism. Once considered a simple phenomenon, this pioneering cryptocurrency is now the benchmark for the entire sector.

On Ripple’s side, director Monica Long is confident. He believes XRP has the assets to follow the path of Bitcoin and Ethereum to get its own ETF.

Several major investment firms, such as Bitwise and WisdomTree, are already working on proposals to establish an XRP ETF. Their timetable assumes a possible favorable regulatory decision by the end of 2025.

The rise of ETFs and regulatory impact

With the increasing diversification of cryptocurrency-related financial products, investors are constantly looking for new opportunities.

XRP, already well established in the ecosystem, could thus become a solid alternative to Bitcoin. For analysts, the appeal of this type of regulated product lies mainly in the ease of access and the credibility conferred by the approval of the relevant authorities.

The US SEC has often dampened the enthusiasm of the crypto market with its strict approach. However, a change in direction is expected with the announced resignation of Gary Gensler and the arrival of a more crypto-friendly administration.

Observers are eyeing a possible SEC policy tweak that could speed up verification of crypto ETFs, including XRP. However, some believe that Litecoin or Solana could see their ETFs approved first.

While Nate Geraci puts the chances of spot XRP ETF approval at 59% by 2025, speculation is rife. On the Polymarket platform, half of the users expect a final decision by July 31 of the same year. Meanwhile, JPMorgan’s CEO is having fun comparing bitcoin to tobacco.

Evans S.

Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.