XRP ETF Supply Shock Looms Amid New Spot ETF Launches
Crypto analyst Cobb warns of an imminent XRP ETF supply shock following the launch of spot XRP ETFs by Canary Capital and Bitwise. Unlike current market pricing, he expects significant inflows as more funds come online, mirroring past rallies in BTC and ETH after their ETF debuts.
SoSo Value data shows peak daily net inflows of $245 million at launch, but inflows have since slipped amid market declines. With Grayscale, Franklin Templeton and 21Shares set to roll out new XRP ETF products within days, cumulative inflows could surge.
Pundit Chad projects daily net inflows surpassing $1 billion, potentially driving XRP’s price well above current $1.91 levels. If XRP ETF launches follow the trajectory of Bitcoin and Ethereum ETFs, token scarcity could intensify, heightening bullish momentum. Traders should track inflow data, ETF approvals and custody flows as catalysts for possible price breakouts in XRP.
Bullish
Launch of spot XRP ETFs reduces circulating supply as tokens move into custody. Historical precedent: Bitcoin ETFs in 2021 sparked a rally to new highs; Ethereum ETFs in 2023 drove significant price surges. With Grayscale, Franklin Templeton, and 21Shares entering the XRP ETF space, daily inflows could exceed $1 billion, intensifying token scarcity. Short-term, this can trigger a sharp price rally as demand outpaces supply. Long-term, institutional adoption under US securities regulations boosts market confidence and liquidity, sustaining upward momentum. However, overall crypto market sentiment and ETF flow consistency will influence volatility. Given these factors, the news is bullish for XRP.