Here’s the Potential Impact of XRP ETFs on XRP Price

The idea of an XRP ETF felt distant for years, yet the first wave of products launched with strong attention. This creates a natural question that keeps coming up. What kind of effect could XRP ETF have on XRP price? The topic has been everywhere in recent conversations.

Analysts from the Working Money Channel on YouTube also broke down the early numbers and the mechanics behind these new products.

How XRP ETF Creates Fresh Interest in XRP Token

Through XRP ETFs, investors who never wanted to deal with wallets or exchanges now have a bridge into XRP token exposure. The analyst from Working Money Channel explained that early trading volume for XRP ETF surprised many observers.

He pointed out that the first hours brought large activity that placed XRP ETF ahead of several well known crypto ETFs. That early moment is important because it shows that appetite exists beyond the usual crypto crowd.

Something like this reminds some people of the early period when Bitcoin ETF opened the door for traditional investors. New inflows did not move the market instantly, yet they changed the tone of the conversation.

XRP ETF works in a similar structure where issuers must hold physical XRP. That requirement introduces sustained demand over time rather than a single event spike. This is one reason the analyst believes XRP price movement may not reflect the real impact immediately.

Why XRP Price Did Not Jump Immediately After ETF Launch

XRP price stayed relatively stable during the first hours of the ETF launch. Many expected a fast jump, and the analyst spent time explaining why such a reaction rarely happens. Settlement processes take time. Net inflows do not become XRP purchases instantly. Creation of new ETF shares must be balanced with real XRP acquisition, yet that process happens on the next business cycle.

This creates a natural delay that confuses new traders. The analyst mentioned that ETF trading volume often reflects people buying and selling ETF shares rather than XRP itself. Actual XRP demand shows up only when new shares need backing.

That difference matters because it explains why XRP token can hold steady even while ETF volume looks impressive. The structure feels similar to how Bitcoin reacted during its ETF period. The market dipped at first, then turned upward once real inflows settled.

How Institutional Access Could Influence Long Term Ripple Price

Ripple price movements have always depended on liquidity, utility, and broad market cycles. XRP ETF adds another layer. The analyst highlighted that major funds often require time before entering new assets. These institutions conduct compliance checks and formal reviews before allocating capital. This creates a second wave effect. Early ETF trading tells us what retail interest looks like, while the next stage reveals how much institutional demand may follow.

XRP ETF also changes accessibility. Large funds cannot easily buy the Ripple token directly on exchanges or store them in private wallets. Regulatory and audit requirements make such steps complicated. ETF solves this by offering regulated exposure to XRP. That convenience may encourage slow but steady inflows over several weeks. The analyst believes this gradual accumulation can support long term Ripple price strength if demand continues.

Read Also: Analyst Says Filecoin (FIL) Bottom Is In – Here’s the Outlook

What XRP ETF Might Mean for the Future of XRP Price

XRP price may respond gradually rather than explosively, according to the analyst’s breakdown. He emphasized that real buying pressure from ETF inflows appears after settlement cycles. This means movement can show up over days or weeks rather than minutes. The structure is similar to what happened with Bitcoin ETF where early dips turned into steady climbs once inflows settled.

Ripple token often follows Bitcoin during speculative phases, yet ETF activity can introduce unique catalysts. Fresh capital from institutions, combined with repeated share creation, may increase long-term demand. This does not guarantee any particular outcome, yet it gives XRP token a new pathway for adoption among investors who never touched crypto before.

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The post Here’s the Potential Impact of XRP ETFs on XRP Price appeared first on CaptainAltcoin.