The post XRP News: ETF Approval Could Suck Up Supply Like a “Vacuum” & Pump Price Higher appeared first on Coinpedia Fintech News
A popular crypto analyst from the Good Morning Crypto podcast has made a strong prediction about XRP. He believes that the approval of XRP-based ETFs could trigger massive buying pressure, pushing prices higher. According to him, once proper regulations are in place, both investors and daily users of XRP could find themselves racing to grab what’s left of the supply.
So what’s driving this bullish outlook? Let’s break it down.
XRP ETFs Could Act Like “Vacuum Cleaners”
The analyst explained that Exchange-Traded Funds (ETFs) could play a major role in XRP’s price movement. When someone buys an XRP ETF, the actual XRP gets stored with a qualified custodian, meaning it’s no longer available for trading in the open market. He compared this to giant vacuum cleaners sucking XRP out of circulation.
With already 18 XRP ETF applications on the table, and there’s a speculation that BlackRock, with a AUM of $11 trillion in assets, may enter the space, the potential demand could be massive.
If that happens, a lot of XRP will be taken off the market, which could push the price higher.
Clear Regulation Might Unlock XRP’s Daily Use
At the same time, the analyst believes that under Donald Trump, crypto rules in the U.S. could become clearer & easier. If this happens by August, more businesses might start using XRP for daily payments.
Meanwhile, market makers, the ones who use XRP for regular transactions, would need it every single day. But while they’re using it, they’d also see the price going up because ETFs are buying up the supply.
If this scenario unfolds, XRP may no longer be as cheap or available as it is today.
On the other hand, the Ripple and SEC lawsuits have been paused for the next 60 days. Many believe it could finally come to an end by July or August. This could be a big moment for XRP, possibly pushing its price higher.
How High Can XRP Go, If ETF Approved?
Recently, Coinpedia News reported that Crypto analyst EGRAG Crypto believes XRP has the potential to soar as high as $27 if an XRP ETF gets approved.
As of now, XRP is trading at a much lower price, around $2.08, with a market cap of $121.5 billion.
