A notable XRP community figure has detailed a strategic roadmap envisioning the transformative impact of an XRP exchange-traded fund (ETF), paving the way for XRP to attain unprecedented price heights.
Recently, professional game designer Chad Steingraber shared his perspective on the potential impact of an XRP spot ETF in reshaping the dynamics of the XRP market. Specifically, Steingraber outlined a step-by-step process by which an XRP ETF could trigger a significant surge in XRP’s value.
Step-by-step How ETF Could Trigger XRP
According to his analysis, the introduction of an ETF necessitates the purchase of XRP from public exchanges. This perspective is grounded in the fact that in a spot ETF, funds are committed to the actual underlying asset. It contrasts with a futures ETF, where the ETF issuer does not physically hold the asset.
Following the purchase, Steingraber noted the ETF locks up of the acquired XRP tokens, typically with a custodian. The ETF would then issue derivative shares, attracting diverse investors, including institutions and the broader public.
Furthermore, Steingraber theorized that the public purchase and locking of XRP would create a scarcity factor in XRP’s supply. “Public supply drops, demand goes up from both ETF and public,” he noted.
As a result, he expressed a conviction that the asset’s market value “has no other direction but up.”
Holding XRP ETF Shares for Decades
Besides, the XRP community figure emphasized the class of investors that would buy into XRP ETF shares. He noted investors such as institutions and governments will commit funds to the ETF.
Additionally, Steingraber highlighted that most investors participating in the ETF would likely adopt a decades-long or even perpetual holding strategy, passing down their XRP ETF shares from generation to generation.
His vision aligns with the idea that sustained interest from long-term investors, coupled with a reduced supply, could create a market environment compelling XRP’s upward trajectory.
Notably, the market sentiment following the announcement of a genuine XRP ETF could be the starting point for XRP’s surge. An exemplary scenario played out following the news of a bogus BlackRock ETF filing in November.
In particular, XRP moved from $0.665 to over $0.72 in under 30 minutes, as The Crypto Basic reported.