- XRP ETFs could trigger a significant supply squeeze as institutional inflows rapidly absorb liquid tokens, potentially pushing XRP into a long-term scarcity cycle.
- XRP ETFs are emerging, analysts projecting that sustained institutional demand could accelerate XRP toward multi-year bullish targets.
Analyst Diana has unveiled such a model forecasting that spot for XRP ETFs, exchange-traded funds (ETFs) could absorb up to 1.5% of XRP’s liquid supply in mere months, potentially consuming about the entire public float by 2026 amid surging institutional demand.
Moreover, according to the recent reports, Ripple’s native token trades near $2.30 with a $135 billion market cap, and the ETF signals a paradigm shift from speculative trading to mainstream adoption.
In line with Crypto News Flash (CNF) report, XRP took center stage as Ripple was evolving into a global finance leader. Furthermore, according to analyst Chad Steingraber, institutional demand via spot-XRP ETFs could become so intense that the actively tradable supply of XRP might be vastly constrained well before 2026.
His projection builds on the growing conviction within the XRP community that the “real” institutional impact of ETFs has yet to materialize. As for XRP ETFs, in addition, JPMorgan analysts, in a recent analysis, warned of the transformative inflows ahead:
between $4 to $8 billion could flow into the upcoming XRP Spot ETFs once they launch in the market.
Thus, this projection highlights how such capital surges—driven by ETF creations—could rapidly deplete XRP’s liquid supply of around 60 billion tokens, exacerbating scarcity and mirroring the supply squeezes seen in Bitcoin’s ETF era.
The Implications for XRP’s Market Price
According to current projections, the implications for XRP’s market price remain overwhelmingly bullish. If ETF issuers begin absorbing significant portions of XRP’s circulating the supply, the resulting scarcity could drive strong upward with pressure. With institutional demand in projected in the billions, ETF inflows could quickly outpace the roughly 60 billion XRP available on the open market.
Historical precedents support this dynamic. Bitcoin’s 2024 surge—when ETF inflows helped push BTC from around $40,000 to $80,000—shows that how rapidly institutional capital, and can move prices. Based on similar patterns, conservative XRP models point toward $5–$10 by mid-2026, while more to estimates that put XRP at $20+ as supply tightens.
A particularly bullish outlook comes from crypto analyst Jake Claver, who links XRP’s long-term trajectory directly to ETF adoption, institutional integration, and Ripple’s expanding global partnerships:
XRP could soar to $100 by 2025 and $1,500 by 2026, fueled by ETF approvals, institutional demand, and Ripple’s global expansion.
Hence, Claver’s forecast echoes trends seen in other ETF-driven crypto cycles, positioning XRP for what some call a potential “supply crisis”—where locked-up ETF holdings meet unrelenting demand.
According to CoinMarketCap live data right now, XRP is trading at approximately $2.13 USD, has been decreasing about 14.4% in the past week of market trade. However, this updated price serves as the baseline from which supply-driven acceleration could occur if ETF demand intensifies. See XRP price chart below.