TLDR
- Canary Capital CEO Steve McClurg predicts XRP ETFs will attract $5 billion in inflows during their first month
- XRP ETFs expected to outperform both Bitcoin and Ethereum ETF launches based on Wall Street popularity
- Market odds for 2025 XRP ETF approval have risen to 87% according to current predictions
- Institutional backing through ETF approval could legitimize XRP for major investors like hedge funds and pension systems
- Analysts suggest $5 billion inflow could drive XRP price to $26 per coin with $1.36 trillion market cap
Steve McClurg, CEO of Canary Capital, has made a striking prediction about potential XRP exchange-traded funds. He believes these investment products could attract $5 billion in inflows during their first month of trading.
This forecast stands out when compared to previous crypto ETF launches. Bitcoin spot ETFs recorded $1.46 billion in net inflows during January 2024, though they began trading on January 11. By February 12, one month later, Bitcoin ETFs had accumulated $3.26 billion in total inflows.
Ethereum spot ETFs performed much differently. They experienced a net outflow of $483 million in July 2024 and continued with $5.70 million in net outflows one month after their debut. The Grayscale Ethereum Trust contributed to these disappointing numbers through substantial outflows.
McClurg expects XRP ETFs to become the best-performing crypto investment product once they launch. He projects they will exceed both Bitcoin and Ethereum spot ETF performance with his $5 billion first-month target.
The chances of XRP ETF approval in 2025 continue to climb. Market predictions currently show 87% odds for launch this year, up from 86% in previous reports.
Growing Institutional Interest
McClurg believes XRP holds a unique position on Wall Street. He notes that aside from Bitcoin, XRP ranks as the most popular token among traditional finance professionals. This popularity could drive immediate ETF success upon approval.
The XRP community represents one of crypto’s most active user bases. Teucrium CEO Sal Gilbertie has acknowledged this strength, referring to supporters as the “XRP Army” for good reason.
An approved ETF would create new pathways for institutional investment. Major players like hedge funds, pension systems, and sovereign wealth funds could add XRP to their portfolios for the first time.
XRP currently trades around the $3.00 level. The digital asset has maintained stability despite broader market challenges affecting other cryptocurrencies.
XRP Price Prediction
McClurg argues XRP ETFs will outperform Ethereum products from a “pure financial services” perspective. This connects to XRP’s established role in the payments industry and cross-border settlement systems.
While Ethereum dominates decentralized finance and smart contracts, XRP focuses specifically on payment solutions. This specialization could appeal to institutional investors prioritizing speed and cost-effectiveness over programmability.
XRP leads the cross-border settlement market with clear financial utility. This practical application may attract better investment flows compared to Ethereum’s more complex ecosystem.
The increased trading volume from ETF approval would likely boost liquidity across major exchanges. This would strengthen XRP’s existing utility in payment and settlement networks.
If the projected $5 billion inflow materializes, analysts suggest XRP could reach $26 per coin. This would create a market capitalization of $1.36 trillion for the digital asset.
Market watchers anticipate XRP could break into double-digit valuations with ETF approval. The institutional backing would tie XRP’s value more closely to investment patterns rather than retail trading sentiment.
McClurg expects XRP ETFs to launch alongside other assets like HBAR, Litecoin, and Solana before 2025 ends. The existence of XRP futures products supports the likelihood of spot ETF approval this year.
