- Industry expert Rob Cunningham examines potential impact of 20 XRP ETFs.
- Collective institutional holdings could reach 4 billion XRP, about 6.9% of circulating supply.
- ChatGPT analyzes how ETF approvals might trigger similar market dynamics to Bitcoin’s ETF rally.
The cryptocurrency market is buzzing with speculation following the U.S. Securities and Exchange Commission’s acknowledgment of 19b-4 filings for several XRP exchange-traded funds (ETFs).
This regulatory development has sparked discussions about how institutional demand through ETFs could impact XRP’s value, with industry experts now assessing the potential macroeconomic effects of such investment vehicles.
Seasoned researcher Rob Cunningham recently raised thought-provoking questions about the market impact if 20 financial institutions were to launch XRP-based ETFs or exchange-traded products (ETPs) in 2025.
His analysis suggests that if these firms each managed an average of $500 million in assets under management (AUM), they would collectively hold approximately 4 billion XRP tokens – representing nearly 6.9% of the circulating supply.
This level of institutional accumulation would mirror patterns seen following Bitcoin ETF approvals, potentially creating similar supply pressure that could drive XRP’s price upward. Cunningham highlighted several additional bullish factors that could complement ETF-driven demand, starting with the regulatory environment.
The industry expert emphasized that regulatory clarity in the United States could substantially boost institutional confidence and encourage broader adoption of XRP. He pointed to historical precedent, noting how legal certainty for Bitcoin led to rapid institutional inflows following SEC approval of spot Bitcoin ETFs earlier this year.
Another potential catalyst identified by Cunningham involves the expiration of Ripple’s 1,700 non-disclosure agreements (NDAs). He speculates that these expirations could reveal major previously undisclosed financial partnerships, potentially increasing demand for XRP-based products. Cunningham indicated that he and other experts planned to discuss these factors in detail during an upcoming X Space session.
ChatGPT provides XRP analysis
To gain insight into how these developments might affect XRP’s price, ChatGPT provided analysis on the potential market impact of these bullish factors. The AI tool emphasized that institutional-grade XRP ETFs would effectively “de-risk” the asset for hedge funds, pension funds, and other major financial institutions that have previously hesitated to gain direct exposure to cryptocurrencies.
ChatGPT also highlighted how ETF approval would enable a broader expansion of XRP investment products. Registered investment advisors, mutual funds, and traditional brokers would gain the ability to integrate XRP into conventional portfolios, opening access through retirement accounts and ETF-based derivatives. This expansion would likely trigger wider media coverage, historically a catalyst for mainstream cryptocurrency adoption.
The combination of increasing retail and institutional interest could create what ChatGPT described as a “flywheel effect,” with each surge in demand reinforcing the next. This pattern has been observed with other cryptocurrencies that achieved institutional adoption through regulated investment vehicles.
Particularly notable in ChatGPT’s analysis was the comparison to BlackRock’s Bitcoin ETF approval, which created supply constraints and contributed to Bitcoin’s sharp rally. A similar dynamic could unfold with XRP if Ripple’s NDA expirations reveal significant partnerships with major financial institutions, potentially establishing a strong network effect that drives increased market participation.
