- Canary Capital CEO projects $5B XRP ETF inflows first month.
- Ethereum ETFs struggle while XRP gains strong Wall Street support.
- SEC decision on XRP ETF expected by October deadline.
According to Canary Capital CEO Steven McClurg, XRP ETFs are positioned to outperform Ethereum ETFs once they launch. He told Wall Street investor Paul Barron that XRP is the second most recognized cryptocurrency on Wall Street after Bitcoin. Ethereum is third, even though its market capitalization is much higher than that of XRP.
McClurg estimated that XRP ETFs could see as much as $5 billion of inflows in the first month of Trading. Such a result would put XRP tokens ahead of Ethereum ETFs, which have struggled to take hold. He added, however, that macroeconomic factors, such as Federal Reserve policy, would also determine the success of these products.
Also Read: Bitcoin Rally Faces Doubts as Peter Schiff Warns the Peak May Be Behind Us
XRP’s Advantage in Institutional Markets
The Canary Capital CEO pointed out that the Federal Reserve should have already cut rates, but expects a cut at the September FOMC meeting. He argues that such a move will be a positive step for the digital asset ETFs and promote stronger inflows.
Canary Capital joins a number of asset managers who have filed to list an XRP ETF with the SEC. The regulator hasn’t made up its mind yet, and it will decide on the proposal on October 23, either to approve or reject it. Market analyst Nate Geraci also pointed out the strong demand for CME XRP futures and futures-based ETFs, indicating that spot funds may be even more successful.
Ethereum ETFs Struggle While XRP Builds Optimism
Optimism around XRP continues to grow following McClurg’s claim that spot ETFs could secure $5 billion in their opening month. By comparison, Bitcoin ETFs saw $1.5 billion invested in January 2024 and $3.3 billion by mid-February.
Instead, Ethereum has more recently been dealing with outflows, with reports indicating a withdrawal of $480 million in July 2024 and $5.6 million in August. Much of this decline was accounted for by capital outflows from the Grayscale Ethereum Trust (ETHE). Against this backdrop, McClurg emphasized that XRP’s reputation amongst Wall Street investors and the devotion of the “XRP Army” community give it a more solid foundation for growth.
If approved, XRP ETFs could establish themselves as the strongest alternative to Bitcoin funds. McClurg’s projection of $5 billion in first-month inflows underscores the belief that XRP may surpass Ethereum in the ETF market.
Also Read: XRP Price Teeters on Symmetrical Triangle Edge With $4.44 Breakout Target
