Expert Shows How XRP ETFs Could Add $1 Trillion to XRP Market Cap After Launch

An XRP community commentator has shared insights on how XRP ETFs could potentially boost XRP's market cap after their launch. With the official approval of the Canary Capital XRP ETF (XRPC) to go live, XRP proponents have turned bullish. The historic milestone was marked by Nasdaq certifying the listing, signaling the beginning of institutional exposure to XRP. This development, combined with the anticipated launch of several other XRP ETFs, sparked discussions about how these financial products could impact XRP’s price and market capitalization.

🚨 CanaryFunds’ $XRP ETF is officially effective! 🥳

Nasdaq has certified the listing — marking a historic first for XRP. The era of institutional XRP exposure has officially begun.

Rector highlighted that NASDAQ has already certified the listing for the Canary Capital XRP ETF, with trading set to commence at market open. While Rector himself does not plan to buy XRP ETFs, he emphasized that institutional investors and retirement accounts would likely become key buyers. He also pointed out that major university endowments and large investment funds—which have previously invested in Bitcoin and Ethereum ETFs—could follow a similar strategy with XRP ETFs.

Rector noted that ETFs are one of the few ways for these entities to gain regulated exposure to cryptocurrency assets.

According to Rector, the launch of XRP ETFs could attract between $5 billion and $10 billion in new inflows within the first year. However, he suggested that this influx could occur even faster—potentially within the first month. This projection aligns with estimates from Canary Capital CEO Steven McClurg.

Rector cautioned investors to remain realistic and not expect sudden price spikes. He explained that ETF issuers usually buy a small amount of the asset as "seed capital" before the launch. Once trading begins, they purchase larger quantities on the open market to accommodate investor demand. This mechanism, according to Rector, could lead to a "multiplier effect", where relatively modest inflows significantly boost the asset’s market cap.

Rector compared the impending launch of the XRP ETF to the recent debut of the Bitwise Solana ETF. The Solana ETF began with a modest $200 million in seed capital, yet managed to generate $200-400 million in trading volume on its first day. He expects a similar level of enthusiasm and trading activity for the Canary Capital XRP ETF.

Notably, Rector clarified that there was no evidence of ETF issuers pre-purchasing XRP tokens at lower prices. Instead, they are expected to buy on the open market post-launch, potentially driving demand and prices higher.

To underscore his optimistic outlook, Rector referenced the success of Bitcoin ETFs. Following the launch of Bitcoin spot ETFs, the cryptocurrency's market cap skyrocketed from under $800 billion to $2.5 trillion by October 2025—a $1.76 trillion increase, spurred by just $62 billion in ETF inflows. This resulted in a remarkable 28x multiplier effect.

Rector believes XRP could experience an even larger multiplier, ranging from 100x to 200x, owing to its smaller market size and higher price flexibility. Based on his estimates, $5-10 billion in inflows could elevate XRP’s market cap by $500 billion to $1 trillion, pushing prices to $10-$19 within months or up to a year and a half.

While Rector remains optimistic about XRP, he cautioned that not all ETFs produce similar results. For instance, after the launch of Ethereum ETFs in July 2024, Ethereum's market cap only rose from $412 billion to $598 billion by August 2025—an increase of just $186 billion over a year. Despite $13 billion in net inflows, Ethereum has shown limited price movement since its ETF debut.

This serves as a reminder that although XRP ETFs could lead to substantial inflows and price gains, the ultimate outcome will depend on market dynamics and investor sentiment.

In conclusion, while XRP ETFs present an exciting opportunity to significantly boost XRP’s value through institutional inflows, investors should temper expectations. Not every ETF achieves large-scale success, and outcomes depend on how the market reacts post-launch, as highlighted by varying results from Bitcoin and Ethereum ETF launches.

Investors should remain realistic, exercise diligence, and keep in mind that cryptocurrency markets can be highly volatile.