XRP ETFs Could Experience Rapid Accumulation – Key Insights and Numbers

XRP is entering a significant growth phase as Spot XRP ETFs begin trading in the United States. The excitement surrounding institutional access to XRP has surged recently, with filings and inflow reports indicating increasing interest from funds looking to expand their exposure to this cryptocurrency.

Key Takeaways

XRP is experiencing rapid growth as Spot XRP ETFs begin trading in the U.S.
A projection by Chad Steingraber suggests significant accumulation potential, particularly among 12 ETF issuers.
In a modest accumulation model, ETFs could absorb up to 8.64 billion XRP in a year.
A more aggressive scenario based on Bitwise’s activity suggests possible yearly absorption of 17.28 billion XRP.
The potential change in XRP's supply depends heavily on the stability of ETF inflows and participation from major players like BlackRock.

XRP

Market expert Chad Steingraber has shared projections revealing the potential for aggressive ETF accumulation, reminiscent of the strategies observed in Bitcoin ETFs. These estimates suggest a rapid decrease in XRP's available supply that may be faster than many anticipate—here are the key figures.

Understanding Steingraber’s Projection

Steingraber’s initial scenario considers a steady accumulation model in which 12 Spot XRP ETF issuers each acquire an average of 3 million XRP daily. This projection focuses on overall averages rather than attempting to pinpoint which fund will accumulate the most, as the collective impact ultimately influences XRP's market price.

In this model, daily inflows could reach up to 36 million XRP. Over a typical five-day trading week, that amount would grow to 160 million XRP. In a month, ETFs would absorb approximately 720 million XRP, and by the end of the year, this model could see as much as 8.64 billion XRP removed from public circulation and secured within ETFs.

It’s important to note that these estimates assume consecutive days of net inflows without any outflows. Although hypothetical, this pace aligns with early trends seen in Bitcoin ETFs, where consistent averages across issuers supported ongoing demand for Bitcoin.

XRP Chart XRPUSD currently trading at $1.91. Chart: TradingView

An Even More Optimistic Scenario Based on Recent Activity

In a subsequent analysis, Steingraber proposed a more aggressive accumulation model, using Bitwise’s Spot XRP ETF as a reference point. Data indicates that the Bitwise XRP ETF experienced inflows of approximately 5.82 million XRP on its first trading day. This leads to a revised projection where the daily acquisition rate is increased to roughly 6 million XRP per issuer.

If all 12 funds follow this trend, the total daily accumulation could reach 72 million XRP. Over a typical five-day trading week, this amounts to about 360 million XRP, and monthly totals could climb to around 1.44 billion XRP. By the end of one year, this more assertive model could result in 17.28 billion XRP being taken up by ETF products.

Steingraber warned, "The entire XRP public supply will be gone UNLESS THE PRICE GOES ASTRONOMICALLY HIGH." These projections serve as a crucial reminder of how quickly XRP’s supply dynamics could shift once ETF inflows stabilize and larger players like Grayscale, Bitwise, Canary, CoinShares, Franklin, 21Shares, and WisdomTree enter the market.

However, it's worth noting that BlackRock, which manages the largest Spot Bitcoin and Ethereum ETFs, has yet to announce plans to launch a Spot XRP ETF. The company confirmed in August that there are currently no immediate plans for such an endeavor.