Crypto currency analyst and professional game designer Chad Steingraber researched the potential impacts of a spot XRP ETF on the value of XRP. Steingraber’s detailed analysis suggests that the approval of an XRP ETF could trigger a significant price increase for the cryptocurrency.
XRP ETF to Fuel Price Increase
In a recent post on X, Steingraber revisited a series of tweets he made in December 2023. In these tweets, he highlighted the potential of an XRP ETF to increase the token price, emphasizing the complex mechanics behind this proposed rise.
Steingraber explained that following the potential introduction of an XRP ETF, public exchanges could hold significant amounts of XRP, becoming major repositories and playing a key role in shaping the cryptocurrency’s market presence. Additionally, since the ETF fund actively participates in the market by purchasing XRP from the public, the interaction could establish a direct link between the ETF and the existing XRP supply.
Following this, the ETF would lock up the XRP it purchases, reducing the token’s circulating supply and simultaneously increasing demand, potentially triggering a price increase.
In his latest article, Steingraber described a dual-strategy approach for an XRP ETF to trigger a price increase by leveraging both utility and investment. The crypto currency analyst envisions a scenario where the XRP collected through the ETF is directed to a central liquidity hub. This hub, functioning as a central pool, would allow investors to actively use XRP, potentially affecting the token’s value.
On the investment front, Steingraber predicts that an XRP ETF could direct investments, potentially affecting the demand for the cryptocurrency and increasing the price of XRP.
Despite these optimistic predictions for XRP, it is necessary to note that these remain speculative as no official report confirming the launch of an XRP ETF has been published.
Analyst Discusses Ongoing Price Declines of XRP
In another post on X, Steingraber briefly summarized the reasons behind XRP’s struggle to achieve significant gains over the years. The crypto currency analyst identified the lack of new money entering the market as the primary factor affecting the upward movement of the XRP price.
When asked about the likelihood of XRP’s price rising in 2024, Steingraber predicted that both this year and 2025 could witness a significant “explosion peak” for XRP. After the legal dispute between XRP and the United States Securities and Exchange Commission (SEC) is resolved and decided, there is a possibility of new money flowing into the XRP market, which could lead to a potential increase in the value of the cryptocurrency.