ETF Update

News breaking as I write that Vanguard are entering the crypto ETF market and will be offering their client base the opportunity buy Bitcoin, Ethereum, Solana and XRP ETF’s. Vanguard are the second biggest asset manager with $11 trillion of assets under management so this is huge news, especially as Vanguard didn’t get involved previously with the Bitcoin ETFs last year.

If you want to keep track of the XRP ETFs Chad Steingraber is putting out some really good stuff on X so if you’re on X I’d recommend following him @ChadSteingraber. He is collecting the data on the XRP ETF’s in terms of inflows in dollars and the numbers of XRP being bought as the primary reserve asset.

In the following scenario, using Chad’s data, we’re going to focus on the XRP being bought up by the ETF providers over the first eleven days of trading and extrapolating that figure out to the future to explore where we could go from here.

11 trading days = 317,666,934 XRP (actual figure)

20 trading days = 635,333,368 XRP (projected figure)

12 months = 7,624,006,416 XRP (projected figure)

Caveat: the above estimates are a conservative forecast as we only have data on the first five ETF funds and there is going to be twelve funds including Vanguard and likely BlackRock.

So, with estimates that there is only 3-5 billion XRP available both over the counter and on the exchanges, these models are telling us that in twelve months time, unless there is a substantial increase in price, the entire circulating supply of XRP will be gone.

And this doesn’t take into account any of the other use cases XRP solves.

All this is signalling that we are heading fast towards a supply shock in the very near future.

Exciting times.