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XRP spot ETF, the possibility of massive absorption of circulating supply with institutional fund inflows... analysts pointed out.
Source: DigitalToday Original Title: XRP Spot ETF could absorb all circulating supply in a year… analyst warns Original Link:
Cryptocurrency analyst Chad Steingrabber raised the possibility that the XRP spot Exchange-Traded Fund ( ETF ) could quickly absorb the circulating supply.
Recently, in the XRP community, there is a growing argument that while the actual impact of the ETF has not yet manifested, the influx of institutional funds could have a significant ripple effect on the market.
He explained that assuming an average daily inflow of about $1.08 billion in XRP spot ETF funds, half of this, or about $540 million, could actually be tied to purchases. When applied to the XRP price, this means that approximately 229 million additional XRP would need to be secured each day.
If this trend continues for a week, approximately 1.14 billion XRP will be absorbed by ETF issuers in the market; if it continues for a month, around 4.58 billion XRP; and if accumulated over six months, about 27.49 billion XRP. This amount is close to half of the current circulating supply of XRP. Ultimately, it is suggested that if the institutional buying pressure through ETFs is maintained for a certain period, there is a possibility that the supply and demand structure of the XRP market will be fundamentally reshaped.
However, if the XRP ETF becomes a more attractive option for institutional investors, it cannot be ruled out that a different trend may unfold compared to the existing cryptocurrency market. Steingraber predicted that the impact of the XRP spot ETF on the market will become clearer over time.