- Game designer Chad Steingraber believes an XRP ETF could boost XRP’s value through purchases and long-term holding by investors
- Steingraber’s vision involves buying and locking up XRP, attracting long-term investors, and creating scarcity.
Renowned game designer Chad Steingraber has provided a strategic roadmap that shows how an exchange-traded fund (ETF) centered around XRP could have a revolutionary effect. This roadmap raises questions about the future of this well-known cryptocurrency by highlighting the possibility that XRP will reach previously unheard-of price levels.
34 – How the ETF brings price increases:
1 – The public exchanges hold #XRP
2 – The ETF Fund buys #XRP from Public
3 – ETF locks up #XRP
4 – The Derivative Shares are sold to the majority
5 – Public Supply drops, demand goes up from both ETF and public
6 – Price has no other… pic.twitter.com/GKOdCYzgKi— Chad Steingraber (@ChadSteingraber) December 30, 2023
Steingraber’s Vision for an XRP ETF Surge
According to Steingraber, the main focus of the prospective value increase of XRP is the possibility of an XRP ETF. He has provided a detailed study of how the introduction of such an ETF would cause XRP’s market value to rise significantly. Steingraber thinks that the launch of an ETF would require buying XRP off of open markets, emphasizing the real underlying asset. It differs from futures exchange-traded funds (ETFs) because the ETF issuer does not physically own the asset.
Steingraber notes that the acquired XRP tokens would normally be locked up with a custodian following the purchase. The ETF would then issue derivative shares, drawing in a wide range of investors, including the general public and institutions. Significantly, Steingraber hypothesizes that the buying and locking up of XRP by the general public. Consequently, he firmly believes that the asset’s market value would have nowhere to go but up.
Long-Term Investment Strategy
A fascinating feature of Steingraber’s concept is the kind of investors drawn to XRP ETF shares. He draws attention to the possibility of governments and institutions contributing money to the ETF. In addition, he argues that most ETF participants would probably choose to hold their shares for decades or maybe forever, enabling them to transfer their XRP ETF holdings to upcoming generations. This long-term dedication and a decrease in supply may force XRP’s upward trajectory in the market.
News about ETFs has historically affected market sentiment. Thus, Steingraber’s idea is not without precedence. Such an instance transpired after the declaration of a fraudulent BlackRock ETF filing in November. In less than 30 minutes, XRP’s price increased significantly from $0.665 to above $0.72, indicating the possible influence of developments in ETFs on the value of cryptocurrencies.
WrathofKahneman’s Perspective
Prominent crypto analyst WrathofKahneman (WoK) presents a more pessimistic assessment of the possibilities of an XRP ETF in contrast to Steingraber’s optimism. WoK, an advocate of XRP, says that it is unlikely that an ETF of this kind will materialize until a big event occurs.
Crypto ETFs in 2024 mean volatility. It’s not just the influx of institutional funds, it’s the arbitrage between the ETF & the underlying asset. And not many co’s house both ETF & Crypto under one roof, exacerbating arbitrage opp’s. Can’t imagine #XRP ETFs until case is over.
— WrathofKahneman (@WKahneman) December 31, 2023
According to WoK, the introduction of crypto ETFs generally may result in a rise in institutional investment in the cryptocurrency area, which may cause market volatility to increase as chances for arbitrage between the ETF and the underlying crypto assets arise.
The Ongoing SEC Lawsuit
The ongoing dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) is one major barrier that clouds the possibility of an XRP ETF. The complaint in this October 2021 lawsuit claims that sales of XRP were an unregistered securities offering.
WoK believes the approval of an XRP spot ETF will be unlikely until this litigation concludes. The fact that the lawsuit has been pending for a number of years raises doubts about XRP’s prospects in the ETF market.
An XRP ETF may be possible as a result of the Chicago Mercantile Exchange (CME) listing XRP futures, according to prior suggestions made by Bloomberg analysts. But until such events, WoK’s evaluation remains valid. This crucial stage has not yet occurred.
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