- XRP’s first Nasdaq spot ETF attracted $245 million, but the price fell by nearly 8%.
- ETF inflows were less than 1% of the $138 billion market capitalization of token.
- Token is currently trading at $2.27, with a trade volume of $4.35 billion. Bullish forecasts suggest a potential of $50–$150.
The first-ever XRP spot ETF by Nasdaq has created a massive buzz in the markets. However, XRP fell approximately 8%, surprising investors who had anticipated an immediate surge. Although the ETF’s first-day inflows were impressive, the amount was still too small to influence a digital asset valued at over $138 billion.
ETF Inflows Hit $245 Million Milestone
The ETF’s launch day alone attracted net flows of around $245 million, in addition to near volumes of $60 million, establishing a new record for any XRP investment product. As highlighted in the post by DrBullZeus, the flows attracted more attention than the launches of the IBIT from BlackRock, as well as the BITB from Bitwise.
While this set a record for a new XRP product is less than 1% of XRP’s total market value. Given the massive market capitalization, the amounts were too small to make any impact in terms of pricing. As excitement cooled, short-term holders took profit, pushing XRP lower despite the big spotlight around the ETF.
Market watchers believed that the ETF inflows would immediately draw token from the open market. Because of this, the expected instant squeeze on supply never happened, keeping price movement muted. Analysts believe it takes significantly larger flows, possibly between 10 to 15 times larger, perhaps as much as $3-$5 billion, for the price to move upwards.
Limited XRP Impact on Exchange Price Charts
Data from the major exchanges shows there are around 2.4 billion XRP available for trading, valued at slightly under $5 billion. In addition, there are reportedly around $5 to $12 billion in the off-exchange OTC desks.
Large institutions make purchases over the counter, often incurring a possible 5%-15% cost markup to prevent extreme price spikes. This quietly reduces overall supply over time, but it does not cause immediate jumps on exchange charts.
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Market Update and Price Outlook
The current price of XRP is $2.27, has a trading volume of $4.35 billion in the last 24 hours, and a market capitalization of $136.77 billion, but it has been declining by 0.83%.
According to a recent post by XRP Avengers, token is poised for a major bull run. The targets of the upcoming bull run, as mentioned in the post, could range from $10 to $30.
The post continues to highlight that if the XRP spot ETF were to successfully list, it could push the price beyond the current levels, settling between $50-$150. This could be followed by another period of consolidation in the $100-$500 range, giving traders an important opportunity to reassess the market.
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