- Analysts argue a spot XRP ETF could trigger “capital rotation,” pulling investment from BTC and ETH
- The bull case for XRP is its passionate community and structure, which doesn’t rely on staking
- The SEC has officially delayed all spot XRP ETF decisions, with a new deadline set for October 2025
A crypto analyst has highlighted the massive potential of a spot XRP ETF, suggesting that if approved, it could significantly disrupt the market’s capital flow.
Will a Spot XRP ETF Reshape the Crypto Market?
While the analyst projected an optimistic launch timeline of September or October this year, the regulatory reality points to a longer wait.
The analyst’s core argument centers on capital rotation, a pattern where a new, hot product can pull significant investment away from established leaders like Bitcoin and Ethereum.
Could an XRP ETF ‘Demolish’ Bitcoin and Ethereum Inflows?
The theory that an XRP ETF could challenge market leaders stems from the concept of capital rotation. In crypto, investors often move funds from one sector to another based on the dominant trend. For instance, a strong Bitcoin rally can often drain momentum from the altcoin market.
Applying this logic, the approval of one or more of the 20+ proposed XRP ETFs could trigger a major capital shift. Investors looking for the next high-growth opportunity might transfer funds from Bitcoin and Ethereum ETFs directly into new XRP products, potentially slowing the growth of the market’s current titans.
Why Do Some Analysts See XRP Outperforming Ethereum?
The belief that a spot XRP ETF could see lopsided demand rests on two key factors: its community and its structure. First, the analyst points to the famously passionate “XRP Army,” arguing this deep, dedicated community is ready to convert its enthusiasm into massive ETF inflows.
This sentiment is echoed by others in the space, with the CEO of Canary Capital stating “absolutely” when asked if an XRP ETF could outperform Ethereum’s.
Second, a key argument gaining traction is that XRP’s structure offers a clearer value proposition to certain investors. Unlike Ethereum, XRP does not rely on staking or passive income. Some analysts believe this makes it a more straightforward asset for investors focused purely on price appreciation, potentially giving its ETF a competitive edge.
What Is the Official SEC Deadline for an XRP ETF Decision?
While market analysts express optimism, the official timeline is more cautious. Despite predictions of a launch this fall, the U.S. Securities and Exchange Commission is taking a deliberate approach.
The latest regulatory filings show the SEC has delayed its XRP ETF decisions to October 2025, extending the review period for major issuers.
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Source: https://coinedition.com/xrp-etf-vs-bitcoin-will-capital-rotation-sink-the-king/
