Canary Capital’s XRP ETF went live on Thursday, making it the first institutional client to receive approval from the SEC. Franklin Templeton’s ETF was also launched this week, aiding the institutional rush towards the digital asset.
A recent price model from cryptocurrency analyst Diana highlights that XRP could soar to $7 when ETFs go live, and the influx of funds from institutional investors could also make it reach the $24 mark. She outlined a data-driven thesis showing multiple framework tests involving ETF launch scenarios.
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Her framework involves five to 20 EXP ETF launches with a seeding of between $10 million $45 million. Depending on the scale, it might receive an inflow of $50 million to $900 million and fund nearly 1.5% of XRP’s 60-billion-unit liquid supply.
According to her price prediction, this level of inflow via XRP ETFs could push its price between $3 and $15. If the influx of funds is stretched for the next two months, the price could soar to $24, she explained. Therefore, accumulating the altcoin now at its lowest price point could be beneficial.
Will XRP Reach $24 After All ETFs Go Live? Here’s Our Take
ETF inflows into XRP don’t guarantee major price jumps; Canary Capital’s launch is the prime example. On the day the first ETF went live, the leading altcoin already dipped more than 2%. Institutional clients have the leverage to negotiate off-market deals, unlike the retail investor. Institutional funds routinely execute off-market transactions in the primary market for ETFs.
Also Read: Here’s When XRP Sends Its “Buy” Signal Every Cycle
This cuts into the primary chart of XRP that will end up trading regularly. However, Bitcoin zoomed in price after the SEC approved a BTC ETF in early 2024. Trillion-dollar asset management firms sent Bitcoin above the $100,000 with their larger-than-life investments. Now, whether XRP could follow the similar footsteps, only time will tell.
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