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HomeCrypto NewsMarketExpert Explains Why Spot ETFs Are a Game-Changer Amid Anticipation of an XRP ETF

Expert Explains Why Spot ETFs Are a Game-Changer Amid Anticipation of an XRP ETF


A top XRP community figure discusses the potential impact of spot ETFs on the crypto market, suggesting that they could lead to an institutional run on digital assets like XRP.

In a recent tweet, Chad Steingraber, a professional game designer and well-known figure in the XRP community, shed light on the significance of spot exchange-traded funds (ETFs). Steingraber’s remarks on the subject come amid growing anticipation of an XRP ETF filing.

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Impact of Spot ETF on Crypto

According to Steingraber, spot ETFs are game-changers in the crypto space due to their unique characteristics. He noted that, unlike other investment vehicles, spot ETFs are physically backed. In other words, the investment fund must acquire and retain the underlying asset that the spot ETF tracks.

Steingraber elaborated that this unique characteristic particularly implies infrequent buying and selling of the underlying asset on the public market. The objective is a gradual accumulation to enhance the fund’s overall value over time.

Furthermore, the XRP enthusiast noted that the same rule bounds every spot ETF created. He argued that the implication is that hoarding becomes a prevailing trend as more asset managers welcome spot ETFs. 

Emphatically, the inevitable consequence is a drop in supply coupled with a surge in demand — a basic economic principle that invariably propels the asset’s value and prices to unprecedented levels.

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The XRP enthusiast goes on to suggest that once the gate to spot ETFs is opened, there is no turning back. Steingraber predicts an imminent institutional run on digital assets, a phenomenon that could see every significant financial institution globally joining the fray. 

Coming Crypto Spot ETFs

Notably, crypto market participants eagerly await the U.S. regulator’s assent to the first exchange-traded fund directly investing in Bitcoin. Despite the SEC delaying the approval for Bitcoin spot ETF, foremost asset managers such as BlackRock have proceeded to submit more spot ETF applications, particularly for Ethereum (ETH).

Pundits have argued that these turnouts imply that a crypto spot ETF is inevitable. Amid this anticipation, eyes are focused on the potential introduction of an XRP spot ETF. The rationale is that XRP holds a better regulatory position than Bitcoin and Ethereum, which have pending applications.

Moreover, a bogus XRP ETF filing surfaced a few weeks ago, heightening hopes for a genuine XRP exchange-traded fund.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

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