XRP To $15? Pundit Explains How ETFs Could Trigger Massive Rally
Zach Rector projects that XRP could reach $15, driven by institutional inflows from exchange-traded funds (ETFs). His analysis is based on JPMorgan's forecasts, estimating that XRP ETFs could attract $4 billion to $8 billion in their first year, with a conservative focus on the $4 billion figure. Rector introduces the "market cap multiplier," which shows how sensitive XRP's valuation is to capital inflows. He cites an example where XRP's market cap increased by $7.74 billion with only $12.87 million in inflows, resulting in a 601x multiplier. Using a conservative 200x multiplier, a $4 billion inflow could raise XRP's market cap by $800 billion, leading to a price of nearly $15 per token. Institutional interest is growing, with nine firms filing for XRP ETFs. Despite optimism, Rector notes the underwhelming performance of Ethereum ETFs as a cautionary example. Global regulatory acceptance, such as Brazil's approval of a spot XRP ETF, is crucial for market dynamics. At press time, XRP was trading at $2.14.
