- Jake Claver predicts XRP’s spot ETF could trigger explosive demand.
- Futures ETFs failed, but real XRP buying may reshape market dynamics.
- Upcoming institutional demand could cause XRP’s uncomfortable price surge.
According to Jake Claver, XRP is on the verge of a major price shift that could unsettle the market. He believes the coming approval of spot exchange-traded funds will trigger genuine demand for the token, setting the stage for what he describes as “price discovery that makes people uncomfortable.”
Claver explained that existing XRP futures ETFs have no real impact on the token’s value because they never involve actual XRP purchases. These products rely on cash-settled contracts that are rolled over before expiration.
Hence, no tokens are bought or held, and the market supply remains untouched. He noted that such ETFs simply mirror price movements without affecting circulation or liquidity.
Also Read: Here’s One of the Major Reasons for the XRP $1.5 Flash Crash
Spot ETFs Could Redefine XRP’s Market Dynamics
Claver highlighted that the situation will change once spot ETFs enter the market. Unlike futures products, spot ETFs must buy and store actual XRP tokens through custodians such as Coinbase or Anchorage.
Each dollar invested translates into real XRP being removed from circulation. Consequently, this creates tangible buying pressure that can push prices higher as supply tightens.
He pointed out that a similar pattern occurred with Bitcoin after the introduction of spot ETFs. While Bitcoin futures had existed since 2017, its real upward movement only began when spot funds were approved, forcing institutional buyers to compete for limited tokens.
Claver added that the regulatory pathway for XRP spot ETFs appears nearly complete. The U.S. Securities and Exchange Commission generally requires at least six months of futures trading before approving spot versions, a condition XRP has already met.
Once authorized participants start purchasing XRP in large volumes, the lack of liquidity on exchanges could result in a rapid and uncomfortable price revaluation.
Conclusion
Jake Claver’s analysis suggests XRP may soon experience a significant market transformation. As institutional investors move from paper contracts to physical holdings, real demand could ignite price discovery that challenges current market expectations and reshapes the cryptocurrency’s value landscape.
Also Read: Crypto Market Bounces Back as Veteran Trader Peter Brandt Reaffirms Bullish Outlook
