Analyst Foresees XRP ETF as Catalyst for Price Surge, Investment & Utility To Play Huge Role

The post Analyst Foresees XRP ETF as Catalyst for Price Surge, Investment & Utility To Play Huge Role appeared first on Coinpedia Fintech News

A well-known XRP member Game designer Chad Steingraber has shared a comprehensive analysis, unveiling how an XRP Exchange-Traded Fund (ETF) could potentially drive a surge in the XRP price. Meanwhile, he sees two key factors driving a notable price increase through an XRP ETF: investment and utility.

Chad Steingraber’s Insightful Analysis

In a series of tweets, Steingraber shared some really smart ideas, breaking down how public exchanges, ETF transactions, and supply-demand balance all connect. His vision suggests that this mechanism could attract a flow of investments into XRP.

Steingraber’s forward-looking perspective starts 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. Meanwhile, the ripple effect of this process will be a decrease in available XRP supply, setting the stage for increased demand and a potential surge in XRP’s value.

Further, Steingraber suggests that a significant portion of global investors, including institutions and governments, might choose this ETF path, embracing a long-term perspective lasting for decades. 

However, the intriguing aspect of this is that investors could rely on the interest generated by their XRP holdings, eliminating the need to sell their assets.

XRP’s Role Beyond Investment

Stepping into the second part of his visionary analysis, Steingraber introduces the utility aspect of an XRP ETF.

Drawing parallels between the utility side of an ETF and an XRP utility case, Steingraber proposes a scenario where XRP isn’t simply locked up but is aggregated into an “Institutional Liquidity Hub” for active utilization.

Steingraber’s insights suggest that an XRP ETF will not only drive investment but also enhance the utility aspect, creating a unique blend that could potentially propel the price of XRP to new heights.