XRP Supply Shock Expected as ETFs and Treasury Vehicles Emerge

Crypto commentator Zach Rector predicts an XRP supply squeeze in 2025, driven by the launch of spot exchange-traded funds (ETFs) and digital asset treasury vehicles.

XRP Supply Shock Insights

Rector emphasized that inflows from pending ETFs could lead to significant price increases for XRP, potentially causing a supply shock unless delayed by a US government shutdown.
He referenced past data, noting that in November 2024, net XRP inflows totaled 118 million, while market capitalization grew by 105 billion, suggesting a high multiplier effect on market cap.
Rector's projections suggest that even conservative estimates could result in XRP reaching double-digit prices, with possible market cap growth reaching up to one trillion dollars.
He highlighted additional demand from public digital asset treasury companies like Evernorth, which plans to list on Nasdaq and intends to build a large XRP treasury.
SBI Holdings announced a $200 million PIPE to purchase XRP, contributing to reduced circulating supply.
The potential delay in ETF approvals due to a US government shutdown is cited as a risk factor for the predicted supply shock.
Anticipates a "buy the rumor, sell the news" reaction when spot products launch but remains optimistic about long-term inflows.

Currently, XRP is trading at $2.39.

XRP price