Canary Capital CEO: XRP ETFs Will Outshine Ethereum With $5B

TLDR

• Steve McClurg, CEO of Canary Capital, predicts that XRP ETFs will attract $5 billion in inflows during their first month.
• He believes XRP ETFs will outperform both Bitcoin and Ethereum ETFs based on investor demand and financial utility.
• Ethereum spot ETFs recorded a net outflow of $483 million in July 2024, following a weak first month in the market.
• McClurg says XRP is the most popular token on Wall Street after Bitcoin, making it a strong candidate for ETF success.
• He highlights XRP’s unique use case in cross-border payments as a key reason for its expected ETF market dominance.

Canary Capital’s CEO, Steve McClurg, believes XRP ETFs will outperform competitors with $5 billion in inflows during their first month. He made this projection during a Friday interview, expressing confidence in the product’s market reception. McClurg also expects XRP ETFs to eclipse Ethereum ETFs in popularity and performance.

XRP ETFs Could Surpass Bitcoin ETF Launch Success

Steve McClurg remains confident that XRP ETFs will surpass other crypto ETFs in early demand and institutional interest. He projected $5 billion in inflows within 30 days, significantly more than Bitcoin’s ETF debut. Bitcoin ETFs gathered $3.26 billion by February 12, a month after launching on January 11.

The CEO said, “XRP is the most popular token on Wall Street, besides Bitcoin, and that makes a major difference.” He emphasized XRP’s use in cross-border payments as a core financial application that drives institutional interest. This use case separates XRP from other digital assets, strengthening its ETF narrative.

Moreover, McClurg stated the strong XRP community could influence fund demand immediately after launch. Known as the “XRP Army,” they consistently support developments within the ecosystem. Teucrium CEO Sal Gilbertie said, “They call it the XRP Army for a reason.”

Ethereum ETFs See Outflows Despite Early Anticipation

Ethereum spot ETFs experienced a rocky debut, marked by persistent outflows and market caution. In July 2024, Ethereum ETFs recorded net outflows of $483 million, showing weak investor sentiment. One month after their launch, the funds still saw an additional $5.70 million withdrawn.

A key driver of this performance was heavy outflows from the Grayscale Ethereum Trust. Many investors redeemed positions, negatively impacting Ethereum ETFs. In contrast, McClurg expects XRP ETFs to enjoy solid inflows due to their broader use in financial services.

He believes XRP’s real-world utility gives it a unique investment appeal in regulated markets. He also emphasized that futures-based XRP products already exist, which supports the feasibility of spot ETFs. Thus, these factors could drive consistent institutional interest post-launch.

XRP ETFs Gaining Momentum and Approval Expectations

Chances of XRP ETF approval continue to increase as confidence among market participants grows. According to Barron, the likelihood of an XRP ETF in 2025 rose from 86% to 87%. This rise indicates growing market readiness and regulatory optimism.

McClurg anticipates approval alongside other digital assets like Solana, HBAR, and Litecoin. He expects these ETFs to hit the market before 2025 ends. XRP ETFs could be the first among these to gain approval due to their existing futures market.

Analysts predict that if the projected inflows materialize, XRP could reach $26 per coin, pushing its market capitalization to $1.36 trillion. These projections reflect growing confidence in XRP ETFs as a serious financial product.

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