In a recent inquiry, we decided to consult ChatGPT on the potential market value of XRP if it were to have its own exchange-traded fund (ETF) similar to Bitcoin. Although the AI system acknowledged the challenge of accurately predicting XRP’s valuation with the introduction of ETFs, it relied on Bitcoin’s historical data post-ETF approval to offer an informed projection.
Looking at Bitcoin’s performance after the approval of spot crypto ETFs, we noticed that on January 10, Bitcoin traded at a low of $44,483, but within two months, it reached an all-time high of $73,750. This represented a return of approximately 66% in about 63% after the ETF approvals.
Taking XRP’s current value of $0.5289 into consideration, ChatGPT imagined a hypothetical scenario where an XRP ETF had a similar impact on its price as Bitcoin’s ETF. Assuming a 66% increase from its current price, XRP’s value would rise to approximately $0.878, which is the AI system’s estimate for its potential market value. This projection aligns with the 63-day trajectory observed with Bitcoin post-ETF approval.
However, it is important to note that while a 66% rally was significant enough for Bitcoin to reach a new all-time high, the same percentage growth has a smaller impact on altcoins like XRP. Even at a price of $0.878, XRP would still be 77% away from its previous all-time high of $3.84.
Considering the tendency of altcoins to outperform Bitcoin, it is reasonable to expect that XRP would experience a more substantial percentage growth with ETFs compared to the 66% achieved by BTC. Market conditions, investor behavior, and regulations are identified by ChatGPT as potential catalysts for higher price levels. Overall market sentiment at the time of approval is also crucial, as demonstrated by the approval of Bitcoin spot ETFs during a bull market.
When asked about the possibility of XRP surpassing the $1 threshold following ETF approvals, ChatGPT agreed. It highlighted the potential for increased demand and liquidity, driven by ETFs, as well as the possibility of market hype and fear of missing out (FOMO) frenzy pushing XRP’s price higher than anticipated. Based on these factors, the AI system concluded that a realistic price range for XRP after ETF approval would be between $0.83 and $1.2.
It is worth mentioning that the realization of an XRP ETF is still uncertain, as no asset manager has filed for it despite XRP’s clear regulatory status in the U.S. However, many market participants eagerly anticipate this development. Additionally, some experts argue that the approval of Ethereum spot ETFs by the U.S. SEC could open the door for other crypto asset ETFs, including XRP.
Disclaimer: This article is provided for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not necessarily reflect the opinion of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.