XRP ETFs The Calm Before the Price Surge

Jake Claver

Jake Claver breaks down the potential price surge for XRP following recent ETF applications by Bitwise and Canary Capital. With institutional players entering the space, we could be on the verge of a massive price move for XRP.  Jake explores the significance of these ETFs, the influx of institutional capital, and how this could drive XRP prices higher. Drawing comparisons to Bitcoin's price movements following ETF approval, Jake explains why XRP could experience an even faster and larger spike.  He also discusses Project Ion and how XRP could become a critical settlement asset for stock transactions, potentially leading to four-figure XRP valuations. With ETFs making it easier for big money to flow into XRP, the timing and market conditions are creating a perfect storm for a major price jump.

Transcript

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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