Ethereum Faces 39% ETF Outflows, XRP Predicted to Overtake by 2028

Ethereum (ETH) is currently facing significant pressure, with ETF outflows surging by 39% in just one week. This trend aligns with a broader bearish sentiment in the market, as Ethereum's price has dropped to around $1,500. Despite this, BlackRock has shown confidence in Ethereum's long-term potential by doubling down with a $1.8 billion ETH position, indicating strong institutional support.

Standard Chartered has added fuel to the fire by predicting that Ripple's XRP could overtake Ethereum within the next three years. This forecast is based on several factors, including XRP's design for high-speed, low-cost transactions, and its potential to replace the SWIFT payment system. The bank's Head of Digital Asset Research, Geoffrey Kendrick, believes that XRP's structural strengths could make it the second-largest non-stablecoin asset by the end of 2028.

Standard Chartered's optimistic outlook for XRP is underpinned by several factors, including increased institutional adoption, leadership in the tokenization market, and an improving regulatory environment. The bank anticipates that the U.S. Securities and Exchange Commission (SEC) will approve an XRP spot ETF by the third quarter of 2025, which could draw between $4 billion and $8 billion in the first year alone. This regulatory clarity, along with recent developments such as Ripple CEO Brad Garlinghouse's remarks on withdrawing the SEC appeal, is seen as a significant catalyst for XRP's growth.

Ripple's recent acquisition of prime brokerage firm Hidden Road for $1.25 billion is another strategic move that could accelerate XRP adoption within traditional financial markets. This acquisition is seen as a significant step towards integrating XRP into mainstream financial systems. Additionally, the derivatives market for XRP has seen growing activity, with several exchanges launching ETFs and futures offerings that provide leveraged exposure to XRP.

Despite the bearish sentiment surrounding Ethereum, BlackRock's $1.8 billion ETH position signals long-term institutional conviction in Ethereum's value proposition. However, the mixed signals from Standard Chartered's forecast for XRP and BlackRock's confidence in Ethereum reveal the uncertain and dynamic nature of the cryptocurrency market. The race for the second spot in the cryptocurrency market is heating up, with both Ethereum and XRP vying for dominance.