Tue 14 Jan 2025 ▪
4
min read ▪ by
Evans S.
The crypto sector continues to amaze, even after years of remarkable progress. Bitcoin has already paved the way for many innovative projects. Today, it is XRP’s turn to attract attention, with bold forecasts from JPMorgan anticipating up to $8 billion for an XRP Spot ETF by 2025.
JPMorgan and the Promise of an XRP Crypto Spot ETF
JPMorgan analysts are throwing a stone into the pond. According to their estimates, a spot ETF backed by XRP could attract between $3 and $8 billion in incoming flows.
This forecast is partly based on the success already observed with other cryptos. The Bitcoin ETFs, for example, represent nearly 8% of Bitcoin’s market capitalization, demonstrating institutional investors’ enthusiasm for regulated products.
By relying on the growth of Bitcoin and Ethereum ETFs, the American bank is betting big on XRP’s potential. Since the advent of the first crypto ETFs, the public is gradually getting used to the idea of investing in these assets through more familiar stock products.
Thus, the parallel drawn with Bitcoin generates optimism. This pioneering crypto, once seen as just a phenomenon, is now a benchmark for the entire sector.
On Ripple’s side, director Monica Long is confident. She believes that XRP has the strengths to follow in the footsteps of Bitcoin and Ethereum in order to win its own ETF.
Several major investment firms, such as Bitwise and WisdomTree, are already working on proposals to establish an XRP ETF. Their timeline anticipates a potentially favorable regulatory decision before the end of 2025.
The Rise of ETFs and Regulatory Impact
With the increasing diversification of financial products related to cryptos, investors are constantly seeking new opportunities.
XRP, already well established in the ecosystem, could thus position itself as a solid alternative to Bitcoin. For analysts, the appeal of this type of regulated product lies notably in the ease of access and the credibility conferred by the approval of the competent authorities.
The U.S. SEC has often dampened the ardor of the crypto market with its strict approach. However, a change in direction is anticipated with the announced resignation of Gary Gensler and the arrival of an administration more favorable to cryptos.
Observers are watching for a potential adjustment in the SEC’s policy, which could accelerate the approvals of crypto ETFs, including for XRP. However, some believe that Litecoin or Solana may see their ETFs approved first.
While Nate Geraci estimates the chances of approval for an XRP spot ETF at 59% before 2025, speculation is running high. On the Polymarket platform, half of the users expect a final decision before July 31 of that same year. Meanwhile, the CEO of JPMorgan playfully compares Bitcoin to tobacco.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has continued to research the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
