Cryptocurrency analyst, and professional game designer, Chad Steingraber has delved into the impacts of an XRP Exchange Traded Fund (ETF) on the value of XRP. Steingraber has provided a detailed analysis of how the approval of an XRP ETF could trigger a significant price increase for the cryptocurrency.
XRP ETF To Fuel Price Increase In a recent X (formerly Twitter) post, Steingraber revisited and addressed a series of tweets made in December 2023. In those tweets, he highlighted the potential for an XRP ETF to boost the price of the token, emphasizing the intricate mechanics behind this proposed surge.
There are two prongs to this⬇️
Investment // Utility
The utility side will be the same as an ETF, except the #XRP in this utility case will be collected into a Institutional Liquidity HUB and will be actively used. https://t.co/Q98DYoExwj
— Chad Steingraber (@ChadSteingraber) February 9, 2024
Steingraber explained that following the possible introduction of an XRP ETF, public exchanges may become key repositories by holding a substantial volume in XRP, effectively playing a crucial role in shaping the foundation of the cryptocurrency’s market presence.
Additionally, as the ETF fund actively participates in the market by buying XRP from the public, the interaction may establish a direct connection between the ETF and the existing XRP supply.
Following this, the ETF would lock up the acquired XRP, thereby reducing the token’s circulating supply, and simultaneously increasing demand and triggering a potential price increase.
Ripple currently trading at $0.52087 on the daily chart: TradingView.com In his recent post, Steingraber unveiled a two-pronged strategy for an XRP ETF to trigger a price increase, leveraging both utility and investment. Delving into the utility aspect, the crypto analyst envisions a scenario where XRP collected through the ETF is directed into an institutional liquidity hub. This hub, functioning as a centralized pool, would allow investors to actively utilize XRP, potentially impacting the token’s value.
On the investment front, Steingraber anticipates that an XRP ETF could drive investments, potentially influencing the cryptocurrency demand and increasing the token’s price.
Despite these optimistic projections for XRP, it’s important to note that they remain speculative, as no official reports confirming the introduction of an XRP ETF have been issued.
Analyst Provides Insights Into XRP’s Continued Price Declines In another X post, Steingraber briefly outlined the reasons behind XRP’s struggle to achieve significant gains for years. The crypto analyst revealed that the primary factor influencing the lack of an upward movement in the price of XRP was the absence of new money entering the market.
If you want to know why #XRP hasn’t gone up..
I’ll tell you —> New Money Net Inflows.
That’s all that matters.
— Chad Steingraber (@ChadSteingraber) February 9, 2024
When asked about the likelihood of XRP’s price surging in 2024, Steingraber predicted that both this year and 2025 could witness a significant “blow-off top” for XRP. He affirmed that once the legal dispute between XRP and the United States Securities and Exchange Commission (SEC) is resolved and settled, there’s a possibility of new money flowing into the XRP market, potentially leading to an increase in the value of the cryptocurrency.
Do you honestly think it starts to go up this year?
— M i s s X R P 🖤 (@xrp_miss) February 9, 2024
Featured image from iStock, chart from TradingView
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Scott Matherson Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.