What caused XRP’s market cap to explode on 12-Apr-2025? In fact, it had grown by an astounding $7.74 billion in a mere eight hours! Even with just $12.87 million recorded in inflows, an impressive spike goes here. The moment is indicative of the larger, broader effect that exchange-traded funds (ETFs) could have on boosting the cryptocurrency’s valuation. The lightning-fast uptrend has sparked a lot of speculation about where the price could go next, particularly with all the buzz around possible XRP ETFs.

At the time of writing XRP’s market cap was at $125 billion, with the cryptocurrency trading just above $2.15. At present about 60 billion XRP are in circulation. This is an increase of 2 billion and would raise the XRP total from 58 billion to 60 billion XRP.

ETF Inflows and Market Cap Multiplier

Following the strong market movement recent in both the crypto and traditional markets, analysts have begun speculating about the magic ETF inflows could work on XRP’s price. A hypothetical scenario involving a $4 billion inflow could result in XRP's market cap swelling by $800 billion, based on a 200x multiplier. Meaning for each dollar that pumps into the market through ETFs, XRP’s market cap can potentially double! The possible implications for XRP are huge!

If the market cap grows by the predicted $800 billion, that would still be a 601 times increase. This would result in an additional $601 for each $1 that came into the market. As a result, such a massive hike would likely push XRP’s value to low double-digit territory. In another report, crypto-adjacent JPMorgan estimates inflows to XRP ETFs in the first year of at least $4 billion, up to $8 billion. This indicates a major opportunity to expand the market.

Developments in XRP ETFs

Teucrium didn’t stop with its 2x XRP ETF debuting on NYSE Arca. This debut constitutes a major milestone in the development of XRP investment products. This unique feature provides investors with a more dynamic tool to profit from XRP’s price action. Yet it serves as a multiplier for both upside profits and downside risk.

Even with these advancements, spot XRP ETFs remain stuck in limbo across most of the big markets. This remains the case even with Brazil’s approval of a spot XRP ETF in March of 2025. Approval of a spot XRP ETF in Brazil created a precedent for other markets. Brazil’s approval has raised hopes. Most importantly, it could allow similar products to gain approval in other jurisdictions, which would further spur institutional investment in XRP.

Bullish Projections for XRP

According to an optimistic XRP price prediction, the asset’s price can rise by 597% from its current levels. The projection indicates that given the expected increase in market cap, XRP’s price will have to jump significantly to reflect the market cap increase. That would be a huge jump from where it trades now, which is just under 2.15.

The opportunities for future growth are what makes XRP a promising investment. This fizz has come largely from the expectation of more positive regulation to come and the imminent launch of spot XRP ETFs in most established markets.