The upcoming XRP Spot ETF is shaping up to be one of the most anticipated launches in the crypto market this quarter. Canary Capital CEO Stephen McClurg previously said the product could surpass the success of the Solana ETF, potentially doubling its impact and attracting up to $5 billion in inflows in its first month.
McClurg, known for his early predictions about institutional adoption of cryptocurrencies, said the excitement surrounding XRP’s ETF approval could rival that of Bitcoin and Ethereum funds. His company, Canary Capital, is currently filing Form 8-A for the XRP Spot ETF, which is expected to begin trading on the Nasdaq this Thursday if the exchange certifies it for listing.
Competitive market for virtual currency ETFs
Bitwise CIO Matt Hougan says the upcoming XRP ETF could be one of the most successful crypto products to hit the market, driven by the enthusiasm of its loyal investor base.
Commenting on the growing expectations for spot XRP ETFs, Hogan said it remains to be seen whether XRP can outperform the Solana ETF’s inflows, but he said there is little doubt that the product will garner significant interest once it launches. He explained that what many analysts misunderstand about crypto ETFs is how investor sentiment drives demand.
Sentiment, not consensus, determines ETF success
According to Hougan, XRP’s polarized reputation within the broader crypto community will not affect its success. He explained that ETF inflows depend on the power of those who want to own the asset, not those who oppose it. In other words, a passionate and engaged investor base is more valuable than widespread but lukewarm support.
XRP’s long-standing community, which has remained active despite regulatory uncertainty and market downturns, is exactly the kind of audience that will drive strong inflows for the ETF. He says this confidence will likely lead to large allocations once the product actually launches.
Hogan added that estimating demand for the XRP ETF based on varying sentiments in the community misses the point. Most importantly, large groups of investors want to gain exposure through regulated, institutionally managed vehicles.
“I think XRP will be a huge success. I don’t know if it will be twice as successful as Solana, but it will be another huge success,” he said.
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