XRP's price has seen exponential growth in 2024, marking an important milestone for this cryptocurrency amid the SEC's dispute with Ripple and years of consolidation. Interestingly, with Trump's victory, the rebound in the cryptocurrency market has positively affected this troubled token, which currently trades at $2.41, having reached a seven-year high of $2.84 earlier this month. As Trump becomes a pro-crypto supporter, Bitcoin achieved its largest push last month, further propelling the growth of other crypto assets. However, this is just the beginning, as the approval of the XRP ETF could drive the token even higher, providing greater accessibility for new investors and creating scarcity for the token while increasing its adoption rate. Thus, FOMO could push the price of Ripple tokens to $10 or even higher.
Why did XRP's price rise with the launch of the XRP ETF?
So far, both of these cryptocurrency spot ETFs have been functioning and gaining momentum among investors. The Bitcoin ETF received approval from the U.S. Securities and Exchange Commission in January and played a major role in pushing Bitcoin's price to a historic high of $1,064,000. However, the market took some time to react to this news, as Bitcoin's price dropped with the inflow of BTC ETFs into exchange-traded funds.
In any case, over time, the correlation between the two continues to strengthen, pushing each other to new highs. Even now, Bitcoin's price remains on a bullish track, having recently set a historic high of $106,488.25. Meanwhile, the Bitcoin ETF received $2.17 billion in weekly net inflows, confirming this theory. In light of this, experts believe that by the end of the year, the AUM of the Bitcoin ETF could surpass that of the gold ETF.
The same happened with the Ethereum ETF; before the ETF began trading, Ethereum's price was relatively stagnant with low volatility, but after receiving approval in July 2024, the price began to fluctuate steadily as inflows into the Ethereum exchange-traded fund increased. Although many factors contributed to the growth of these tokens, the trends in inflows and price charts are similar.
Even now, Ethereum is following a bullish trajectory, currently trading at $3,963.13. Meanwhile, Ethereum's net inflows reached $855 million this week, setting a new historical weekly net inflow record. The XRP ETF could see similar results, also benefiting XRP's price.
With the inflow of the XRP ETF, XRP's price will reach $10.
Under the influence of the SEC, XRP struggled for three years, but now the situation has changed, with Trump's victory and Gary Gensler's resignation leading to significant growth for the token. This news has greatly boosted the token, and due to institutional demand, the XRP ETF is expected to see similar surges. Since the approval of the Ethereum ETF, XRP holders have been waiting for this moment. So far, many major firms, including WisdomTree, Bitwise, and 21Shares, have submitted applications for XRP exchange-traded funds, awaiting approval from the U.S. Securities and Exchange Commission.
Despite the adverse relationship between the two, due to XRP's top positioning in the market, the community expects a positive response as it is the fourth largest cryptocurrency. Additionally, considering the monthly inflows of the Bitcoin and Ethereum ETFs, the inflows for the XRP ETF could push XRP's price up to $10.
In the first month of the Bitcoin ETF's launch, it received $30.18 billion in inflows. Within three months, it received $217.38 billion in inflows, indicating exponential growth in adoption. Similarly, in the first month of the Ethereum ETF's launch, it received a total inflow of approximately $9.28 billion. Three months later, this figure was $3.81 billion, which is relatively low. This suggests that early institutional demand led to significant traffic in the first month, but it stabilized over time.
Based on this, considering the high price sensitivity of the XRP ETF and its much smaller market capitalization compared to Bitcoin and Ethereum, the inflow for the XRP ETF in the first month could reach $1.8 billion to $2.3 billion, with three-month inflows potentially reaching $2 billion to $2.6 billion. Therefore, XRP's price could be slightly bullish, pushing it above $3. However, achieving $10 would only be possible if other factors aligned with the ETF launch, such as Gensler's resignation, the successful launch of RLUSD, and the conclusion of the SEC vs. Ripple case.
Final thoughts
With the success of Bitcoin and ETF exchange-traded funds, the ETF market is experiencing exponential growth. Now, the XRP exchange-traded fund is the next target, given the high demand from investors and the recent price growth trajectory, as it recently reached its highest point in seven years. With all these bullish factors, including the successful launch of RLUSD, the conclusion of the Ripple vs. SEC case, and better regulation, XRP's price could reach $3 before hitting $10. More importantly, if the inflows for the XRP ETF follow the trajectory of the Bitcoin and Ethereum ETFs, it could see around $2 billion in inflows in the first month alone.
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