XRP ETF Expected to Trigger Surge in Price, Investment & Utility to Have Significant Influence: Analyst

Game designer Chad Steingraber, a well-known member of the XRP community, has recently shared an in-depth analysis on how an XRP Exchange-Traded Fund (ETF) could potentially lead to a significant increase in the price of XRP. Steingraber highlights two key factors that could contribute to this price surge: investment and utility.

In his series of tweets, Steingraber breaks down the connection between public exchanges, ETF transactions, and the balance of supply and demand. According to his vision, this mechanism could attract a flow of investments into XRP.

Steingraber’s forward-looking perspective begins with the investment side of an XRP ETF. In this scenario, the ETF acquires XRP from public exchanges, locks it up, and issues derivative shares. This process would result in a decrease in the available supply of XRP, paving the way for increased demand and a potential surge in its value.

Moreover, Steingraber suggests that a significant number of global investors, including institutions and governments, may opt for this ETF route, embracing a long-term perspective that could last for decades. What makes this intriguing is that investors could rely on the interest generated by their XRP holdings, eliminating the need to sell their assets.

Moving on to the utility aspect of an XRP ETF, Steingraber introduces the idea that XRP collected through this utility case could be aggregated into an “Institutional Liquidity Hub” for active utilization. By drawing parallels between the utility side of an ETF and this XRP utility case, Steingraber proposes that an XRP ETF could not only drive investment but also enhance the utility aspect, creating a unique blend that has the potential to propel the price of XRP to new heights.