Experts explain the “perfect storm” to increase XRP prices

While the price of XRP has lost momentum on the $ 2 sign, prominent figures in society discuss the following stimuli for a possible storm.

Today, XRP increased by 1.5 %, and is currently trading at $ 2.10, with a 5.6 % improved weekly performance. Although the currency is still a 36 % decrease from its highest level in three months, optimism is still high among enthusiasts who believe that the main storm that can push prices to a new peak is fermentation.

In a conversation discussionAbdullah Nassef, also known as “ABS” – Host of Good Morning Crypto Podcast – Bradley Kims, influencing the “Digital Perspective” account, explore the next catalyst that can pay the XRP price.

The basics of discussion are the potential effects of the stock exchange on the stock exchange (ETFS) on the price of XRP.

The perfect storm to increase XRP prices

KIMES has confirmed that the introduction of circulating investment funds will be huge for XRP. He compared them to “giant blanks” that can absorb all XRP liquidity.

He explained that when customers buy XRP ETF shares, the market pulls some distinctive xrp from the available supply. Basically, this demand will create upward pressure on the price of XRP due to the low supply in the market.

To emphasize the potential scope, he pointed out that there are more than ten asset managers who follow the investment funds actively circulating that will invest directly in XRP. The prominent names include these BitWise, with $ 12 billion of assets under management, and GRAYSCAE, which runs 50 billion dollars. Even Franklin Templeton, asset manager, trillion dollars Follow XRP ETF.

In fact, there are more asset managers looking to launch ETF XRP more than any other descendants of the encrypted currency. Supporters see this tremendous development of the currency, and they expect daily flows of investment funds circulating to add a large purchase pressure and may send the price to the “moon”.

Beyond the circulating investment funds, Kimes also indicated that the demand for XRP is through Payment services One of the market makers, who need daily XRP liquidity, can lead to an increase in prices. Along with the traded investment funds, he believes this creates “the ideal storm of high prices”.

How will ETFS affect the price of XRP?

Exactly how the Investment Funds traded will affect the price of XRP is still inaccurate, but commentators in the industry may speculate in different scenarios.

Last year, an analysis by Crypto Basic explores a scenario where ETFS XRP sees $ 500 million in daily flows. This is possible Pay the price to $ 23. Another analysis forecast If XRP picks up 50 % of Bitcoin’s ETF flows, this may increase 3X prices.

Meanwhile, the American banking giant JPMorgan Echo Crypto.com CEO Chris Marzalek. John Diton, founder of Cryptolaw, believes that the momentum of ETF approvals can help XRP to become the largest altcoin depending on the maximum market.

“Only Blackrock Etf matters”

On the other hand, critics like Joshua Jake Argue It is the only ETF to really concern XRP that was launched by Blackrock. Jake shared this opinion to face the widespread optimism surrounding the impact of more than ten ETF applications.

His argument focuses on the fact that Blackrock Bitcoin ETF was the most successful among all exporters. Since its inception, Blackrock Bitcoin ETF has witnessed $ 39.67 billion in flows, while some exporters – such as Invesco and Wisdomtree – failed to exceed $ 100 million.

During, Speculation The XRP community notes that Blackrock may consider ETF XRP to stay able to compete, although this is still uncertain. In fact, a previous statement by the company suggested that the XRP -based ETF follow up. However, this appeared at a time when the fate of Ripple VS. SEC is unclear.