If JPMorgan Chase's prediction of an XRP ETF comes true, your 1,000 XRP holdings could be worth $17,860, and 5,000 XRP could be worth $89,300. 🧵🧵🧵
The launch of XRP ETFs has reignited market optimism, especially given the continued large influx of funds these products attract.
For reference, these funds have raised approximately $666 million in 11 trading days since their launch. This means that over 300 million XRP tokens have been acquired in less than two weeks.
With the influx of funds accelerating, analysts and market commentators are beginning to re-examine JPMorgan Chase's earlier predictions, which, if ultimately confirmed, could impact the value of XRP.
It's worth noting that in January 2025, four analysts from JPMorgan Chase—Madeline Daleiden, Alexander Bernstein, Kenneth B. Worthington, and Michael Cho—released a research report assessing the potential asset inflows of upcoming altcoin ETPs.
The report predicted that the Solana ETF could raise $3 billion to $6 billion in the first six to twelve months after its listing. The same report also noted that XRP products could attract even more funds, with net inflows expected to reach $4 billion to $8 billion during the same period.
Their assessment was based on previous market acceptance patterns for Ethereum and Bitcoin ETFs. The analysts pointed out that the Bitcoin ETF absorbed the equivalent of 6% of Bitcoin's market capitalization in its first year, approximately $108 billion.
Furthermore, they added that the Ethereum ETF absorbed approximately 3% of its market capitalization within six months, equivalent to about $12 billion.
Analysts applied the same adoption rate to Solana and XRP, whose market capitalizations are significantly lower than Bitcoin and Ethereum, concluding that total ETF inflows for these two assets could reach as high as $14 billion, despite anticipated lower overall demand.
If the expected inflows into the XRP ETF materialize as anticipated, the market could experience significant price volatility. However, determining the specific scale of such volatility remains difficult, so we sought insights from Google's Gemini.
Gemini responded that its forecast is based on JPMorgan Chase's estimate of a maximum of $8 billion in new ETF inflows. Furthermore, it employed a liquidity model called the "Bank of America Multiplier," which suggests that a limited supply of assets can lead to market capitalization growth far exceeding the amount of money flowing into the market.
Gemini noted that a widely cited Bank of America analysis previously indicated that a net inflow of approximately $93 million could cause Bitcoin's price to fluctuate by about 1%, implying a multiplier of approximately 118. It applied the same ratio to XRP to construct a bullish theoretical scenario.
Based on these assumptions, Gemini multiplied the $8 billion in inflow by 118, arriving at a projected increase in market capitalization of $944 billion. Adding this to the current valuation, the theoretical new market capitalization is approximately $1.07 trillion.
The AI chatbot then divided this figure by the circulating supply, arriving at a hypothetical price of $17.86 per XRP token. According to the chatbot, this scenario implies an 8x increase in XRP's price from current levels.
Such an increase would bring substantial returns to ordinary investors, many of whom have held XRP for years, enduring slow price fluctuations and uncertainty.
The current XRP rich list shows over 596,000 wallets holding between 1,000 and 5,000 XRP. At current prices, this amounts to approximately $2,200 to $11,000, meaning these holders are mostly ordinary retail investors.
If XRP rises to the $17.86 level suggested in Gemini's hypothetical scenario, the value of these holders' XRP will increase significantly. Specifically, a wallet holding 1,000 XRP (currently worth approximately $2,200) will see its value increase to approximately $17,860, representing a profit of $15,660.
Meanwhile, an investor holding 5,000 XRP will see their XRP holdings increase in value from approximately $11 to $17,860, also representing a profit of $15,660. A stock worth $0.00 today would reach approximately $89,300. This would yield a profit of over $78,000. However...