Expert Explains How a Spot XRP ETF Could Impact Liquidity

A spot XRP ETF is poised to significantly impact the cryptocurrency market by introducing steady, structural demand for the asset. This increased demand could trigger what experts call a ‘supply shock,’ potentially leading to dramatic price fluctuations. The article dives into the mechanism behind this potential event. 1. Demand Surge: Institutional investors are expected to play a key role in driving XRP demand when ETFs launch. These funds typically require large quantities of the underlying asset to reflect their investor base, creating immediate and substantial market pressure on the XRP supply.