The cryptomarkt looks closely in October, while the SEC is confronted with deadlines for multiple ETF applications, including XRP ETFs. Analysts say that approval can cause a ‘supply -shock’ in the XRP market, where available tokens at fairs are already at historic lows. For example, the XRP inventory of Coinbase has fallen by almost 90 percent in recent months and is now almost 100 million tokens.
Why an ETF could shift the market
Spot ETFs must hold the underlying asset. This means that institutional funds must buy XRP directly from the market to Back shares. With retail investors who usually keep XRP for the long term instead of actively acting, analysts are of the opinion that settings should pay higher prices to convince holders to sell. Some estimate that $ 5 to $ 8 billion in the first month could only flow to XRP ETFs in the first month, which is seen early in Bitcoin ETFs.
Insight into the price behavior of XRP
Jake Claver said that Upcoming ETF approvals can cause a rotation of Bitcoin liquidity in altcoins such as XRP, Solana, Litecoin and Hedera. He explained that most retail investors keep XRP for the long term instead of trading, which is limited at stock exchanges. When settings start buying XRP to Backetfs, prices must rise to convince holders to sell.
Many investors bought XRP on levels between 20 cents and $ 3, and it is unlikely that they give up their tokens, unless the price $ 10, $ 25 or even higher reaches. This setup can create a supply shock as soon as ETF’s demand starts. Claver added that the inflow of $ 5 to $ 8 billion in the first 30 days is possible, much more than Bitcoin -saw at his ETF launch. With Stablecoin projects, CBDCs and Ripple’s partnerships in motion, the timeline and catalysts are converted for a big step.
Catalysts Beyond the ETF
ETF approval is not the only driver. Ripple’s running partnerships with banks, stablecoin projects and potential CBDC pilots add tools to the XRP whides. Countries such as Palau, Montenegro and Brazil are already testing XRP for digital currencies, while companies treasury assignments in active investigation. Analysts say that these developments, combined with the ETF question, can create simultaneous institutional and retail FOMO.