XRP Price Target Set at $10.70 in ‘Base Case’ Post-ETF Scenario; Citing Bitcoin’s $1.76T ETF Precedent
The first U.S. spot XRP ETF is set to launch on Nasdaq, potentially accelerating XRP's market growth. Analyst Zach Rector anticipates XRP's market cap could grow by $500 billion by 2027, raising its price to $10.70 per token under a conservative scenario. A bullish case suggests a $1 trillion market cap increase, pushing prices to $19–$20 per token. The ETF, a single-token product, allows U.S. investors direct exposure to XRP. Analysts highlight the significant role of institutional and retail adoption in determining XRP's price trajectory. Following the ETF announcement, XRP's price rose above $2.50 and could test new highs if further resistance levels are breached. The ETF launch's full market impact will depend on post-launch demand, as issuers are limited to minimal 'seed capital' and cannot stockpile XRP.
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XRP ETF Launch on Nasdaq and Its Potential Impact
As the first U.S. spot XRP ETF prepares to go live on Nasdaq, attention is turning to what this could mean for XRP’s long-term value. According to analyst Zach Rector, the ETF era could be a game-changer, one that mirrors Bitcoin’s explosive growth following its own ETF debut earlier this year.
Bitcoin's $1.76 Trillion Growth as a Benchmark for XRP
Related: XRP ETF Launch From Canary to Trigger Billions In Demand As Exchange Supply Stays Thin.
Benchmarking Bitcoin: Analyst Zach Rector cited Bitcoin's example, where its market capitalization jumped by $1.76 trillion after spot ETFs began trading. Using this as a reference point, Rector outlined potential outcomes for XRP's growth once institutional inflows start.
He explained that the adoption of XRP ETFs could follow Bitcoin's precedent, leading to significant price movement and investor interest.
Rector’s Forecast for XRP Market Cap
Rector proposed two scenarios for XRP's price trajectory:
- Conservative Base Case: XRP’s market cap could increase by $500 billion by 2027, which would place the price at $10.70 per token.
- Bullish Scenario: If XRP attracts inflows closer to $10 billion with a 100x market multiplier, its market cap could grow by $1 trillion, sending XRP prices toward the $19–$20 range.
The speed and size of ETF inflows, along with institutional and retail adoption, will determine how quickly these targets are achieved.
XRP ETF: A Milestone for Institutional Investment
Steven McClurg, CEO of Canary Capital, expressed excitement about the launch, calling it "a proud moment made possible through the actions of SEC leadership supporting free markets."
The XRP ETF will debut as a single-token product, enabling U.S. investors to gain direct regulated financial exposure to XRP for the first time. This achievement highlights institutional efforts to integrate digital assets into mainstream financial systems.
🚨 NEW: Canary Funds CEO @stevenmcclurg said, "We are excited to go effective with the first single-token spot XRP ETF. This was made possible by Chairman Atkins, Commissioner Pierce, and others."
Impact of ‘Seed Capital’ Rules on XRP ETF
It is important to note that issuers are limited in their ability to purchase significant amounts of XRP prior to the ETF launch. They are only allowed to invest "seed capital," ensuring that the full market impact relies on post-launch inflows and investor demand.
XRP Tests Critical Resistance Post-ETF Launch
In the 24 hours following the XRPC spot ETF launch, XRP’s price surged more than 5%, trading above the $2.50 mark. Analysts note that XRP must close a daily candle above the critical yellow zone and break past $3.10 before it can revisit its all-time high and move into price discovery.
Disclaimer
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial or investment advice. Readers should exercise caution before taking action based on the content presented.