If XRP ETF Gets Approved, Here's Ripple Crypto's Fate
Crypto analyst and professional game designer, Chad Steingraber, recently provided an in-depth analysis of the potential impact of a dedicated ETF for Ripple crypto, XRP.
Steingraber's thorough examination highlights the significant implications an XRP ETF could have on the cryptocurrency's value, suggesting the potential for substantial price gains.
If XRP ETF Gets Approved
According to Bitcoinist's report, Steingraber revisited his initial predictions made in December 2023, where he emphasized the potential for a Ripple crypto ETF to trigger a significant price surge for the token.
He elucidated the mechanics behind the proposed increase, explaining how the introduction of an XRP ETF could position public exchanges as primary holders of XRP. This, in turn, would bolster the presence of the cryptocurrency market and potentially enhance its value.
"Its utility side would be equivalent to an ETF, except XRP in this utility case will be aggregated into the Institutional Liquidity Hub and be actively utilized," he stated in a tweet.
34 – How the ETF brings price increases:
— Chad Steingraber (@ChadSteingraber) December 30, 2023
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
Steingraber elucidated the dynamics between ETFs and the Ripple crypto market, noting how the acquisition of this crypto by ETFs from the public could establish a direct relationship with the existing cryptocurrency supply.
By locking up acquired XRP, this fund product would effectively reduce the circulating token supply. This reduction, coupled with increased demand, could serve as a catalyst for potential price hikes.
In a recent discussion, Steingraber unveiled a two-pronged strategy where an XRP ETF might trigger price increases. He outlined a utility-driven approach, envisioning the use of Ripple crypto acquired through the ETF in an institutional liquidity hub.
This centralized pool would allow investors to actively utilize XRP, potentially influencing its market value. Additionally, from an investment perspective, Steingraber speculated that the introduction of an XRP ETF could attract substantial investments, impacting demand and, by extension, its cryptocurrency price.
However, it's important to acknowledge that these projections remain speculative, without concrete reports confirming the launch of such an ETF.
Steingraber's analysis also touches on the challenges faced by XRP in achieving significant market gains over the years. He associates the token's stagnant growth with a lack of new capital inflow into the market.
In his subsequent analysis, Steingraber discusses the prospects of XRP price movements in 2024 and 2025. He suggests that these years could witness a significant explosion peak for XRP, depending on the resolution of the ongoing legal battle between XRP and the US SEC.
Favorable outcomes, according to him, could pave the way for new investments into the XRP market, potentially driving up the cryptocurrency's value.
Steingraber's analysis presents a nuanced view of the potential impact of an XRP ETF on the cryptocurrency market. By elucidating the mechanisms through which ETFs could affect XRP's value, he provides a comprehensive overview of the opportunities and challenges associated with such a financial product.
His insights underscore the importance of regulatory developments and market dynamics in shaping the future direction of XRP.
