00:00Jake Klaver here and in today's video we're diving into the imminent potential price increase for XRP
00:05based on the recent ETFs applications by Bitwise and Canary Capital.
00:12With these heavy hitters entering the game we could be on the brink of a huge price move for XRP
00:18so let's break it down in this video. If you haven't yet please like subscribe and we'll get into the
00:24action. First off let's talk about why these ETFs are such a big deal. Bitwise and Canary Capital
00:29have both filed for spot XRP ETFs. So what's the significance? Institutional capital period.
00:38ETFs make it easier for big money flows to move into assets like XRP. We've already seen this with
00:44Bitcoin. So once they get approved we could see billions enter the market very quickly. Now let's
00:50think about it. When institutional investors buy they do it at scale. They aren't just buying a
00:55couple thousand dollars here and a thousand dollars there. They're going to be buying in the billions.
00:59At least that's what we've seen with Bitcoin. So that kind of volume can really drive some
01:04significant price pressure. It took nearly a decade of regulatory battles to get the first Bitcoin ETF
01:09but once it was finally approved in January of this year Bitcoin's price went up to all-time high
01:14even before the halving. So BlackRock is a big mover in that space and I think maybe there's a potential
01:22that we could see BlackRock use the trust that was filed last year in Delaware in November and stand up
01:30their own XRP ETF very quickly if we did see the S1s approved by the SEC. So what can we learn from
01:38Bitcoin? Well the timeline for approval is uncertain but once XRP ETFs get the green light from the SEC
01:43we could see a very similar surge to price just like they did for Bitcoin. I think it could happen
01:49even faster for XRP. The SEC has been more open to digital assets even though they have been issuing
01:56Wells notices and are in constant litigation with exchanges and other platforms saying that
02:02you know the assets they are selling are securities or potentially securities and not really giving clear
02:07guidance on that. But we know for a fact because of the case between the SEC and Ripple that XRP
02:13is not a security in and of itself. So because of that I think that we could see approval of the S1s
02:21by the SEC faster. Now we did get an appeal from them in the Ripple case here recently and then the
02:28cross appeal from Ripple so that still doesn't allow them to come after the ruling for XRP though and so
02:35because of that I think that they would still be obligated to approve that S1 even if that lawsuit
02:40drags out. So with XRP already being positioned as a settlement currency for financial institutions
02:48combined with the fact that ETFs would have huge inflows we're looking at a perfect storm for
02:55price appreciation. Now let's talk about the timing. While ETFs take time for approval institutional
03:00investors are known to front run the market right so when we saw that that trust had been set up by
03:08BlackRock the iShares trust we saw a spike in XRP the same day it was like 10 percent very quickly
03:13before Bloomberg came out and said that you know no that wasn't real. I think we could see that again
03:18if we saw momentum or something followed from BlackRock I think you would see a huge move of liquidity
03:24and people trying to front run the approval of the S1s. So that means they can start buying XRP before the
03:31ETFs are even approved and the institutions would want to do that because it's a spot ETF they would
03:35want to accumulate the asset before the significant price move happened right. So not to say they don't
03:43already hold some XRP but I think they would have to buy what was left on the market in order to support
03:49these products. So it's not just about waiting for the ETF approval the window for price increase
03:56could start sooner as institutions position themselves for what's coming. We've already seen
04:01Grayscale also launch their XRP trust so it's not out of the realm of possibilities that we could see
04:07price appreciation from these institutions even before these products are launched. Now another
04:13consideration that could continue to drive price appreciation even on the other side of these
04:18institutions stepping behind it would be Project ION. This isn't something that's really been
04:24discussed at scale by a lot of people since 2022 and it was a major initiative by the Depository
04:31Trusted Clearinghouse or Corporation the DTCC and it aimed to transform the U.S. stock market
04:38and the settlement system behind it. So most people don't know that there's clearinghouses and brokers
04:43and settling stocks between the two right now takes up to one day. It's T plus one. May
04:4828th this year I believe they moved over to T plus one and that allowed for the potential to use
04:57a digital asset for instant settlement of those stocks. So but what does that have to do with XRP
05:04right and what would cause a need for instant settlement on the back end of the stock market?
05:10Seems to be working fine now. Why would they go ahead and move that in? Well
05:13many experts like Jim Rickards have pointed out that we are very close to a credit crisis. If there
05:21were a credit crisis to take place you would need instant settlement on the back end of the stock
05:27market basically to save the day in that situation. So for Project ION to achieve instant settlement scale
05:33it would require massive amounts of liquidity to move that value efficiently and that value you guess
05:41would have to be in XRP. By moving institutional capital into XRP using ETFs firms like BlackRock if
05:49they file one and Bitwise enough liquidity could be generated in XRP to support the back end settlement
05:56system and be the settlement layer for Project ION. So with XRP already positioned as a leading solution
06:03for international remittance and cross-border transactions it has the infrastructure needed
06:08for real-time settlement. The inflows of the institutional capital would further strengthen
06:13XRP's liquidity making it the go-to prime candidate for Project ION to settle the stock market real-time.
06:23Now what type of price? Because I know that's going to be the question that everybody asks on this. So
06:30first you need the institutional inflows right? Second XRP would have to get integrated by Project ION
06:37which that would cause the price to soar. So
06:41because of the way it's positioned, let's look at the math.
06:45The U.S. stock market alone handles trillions
06:49in daily transaction volumes. To put it in perspective
06:52it's estimated that the DTCC settles
06:551.7 quadrillion dollars
06:59annually. Which that breaks down to about
07:026.6 trillion dollars in daily settlement volume.
07:06So if XRP was used as the primary settlement layer between brokers and clearinghouses like we talked about
07:12the liquidity required to move that much value would be huge.
07:17There's currently about 50 billion XRP on the open market
07:21and if all of that XRP was used
07:24which it won't be
07:25to settle that 6.6 trillion in daily volumes
07:28the math becomes very simple. You would look at it
07:31work it out, divide it
07:32you have $132 XRP
07:34okay? That's
07:36that's just the math there. So that's a 200% increase
07:40from today's, well more than a 200% increase
07:42from today's price levels
07:44but it gives us an idea of the asset's potential
07:47as more capital flows into
07:49the system and moves on to the network.
07:51So realistically
07:52I think that maybe only a tenth
07:55of what
07:57XRP exists in the open market
07:59could be used to facilitate those payment flows
08:01as you do the math there
08:04and maybe you do have some XRP
08:06used multiple times a day
08:08to be able to settle those transactions
08:10right?
08:12You're still looking at
08:13like a four figure
08:14XRP
08:15like
08:16a thousand plus dollars
08:17to be able to facilitate
08:19that much liquidity
08:20and the settlement between
08:22the brokers and clearing houses
08:23and then you've also got
08:24SWIFT and a lot of the other applications
08:27that Ripple and some other companies
08:29are going after utilizing the asset
08:30so once enough liquidity is in there
08:32I think you're going to see
08:33a lot of these other
08:35potential use cases come online
08:37with institutional capital
08:38from the ETFs coupled
08:40with XRP's potential use
08:42of settling
08:42Project Ion in the back end
08:44of the stock market
08:45the demand for XRP
08:46would increase exponentially
08:48it would hockey stick
08:49it would go vertical
08:50right?
08:51So if XRP becomes
08:52the preferred settlement asset
08:54for both international remittance
08:55and SOC transactions
08:56people would lose their minds
08:58if this were to roll out
09:00so
09:01tell me in the comments below
09:02what do you think?
09:04Is this a possibility?
09:05Am I crazy?
09:07Am I pie in the sky
09:08dreaming?
09:09You know
09:10let me know what you think
09:11and I appreciate you watching
09:12and we'll see you
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