As per The Crypto Basic, analysts are cautioning XRP holders not to expect immediate price surges to $10 or $589 following the launch of XRP spot ETFs. Despite the recent inflows into ETFs like Canary Capital and Bitwise, which have seen over $410 million in combined inflows in a week, XRP's price has dipped below $2. Experts explain that ETF inflows do not immediately translate into open-market demand, as issuers only pre-buy minimal amounts of XRP, known as seed capital. Price movements are expected to occur only when ETF creation demand rises and authorized participants must purchase XRP directly from exchanges, leading to a potential supply squeeze.
Analysts Warn XRP ETF Launches Won't Trigger Immediate Price Surges
TheCryptoBasicShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.