A well-known member of the XRP community has described a two-part strategy that an XRP exchange-traded fund (ETF) could use to drive the price of XRP to record highs.
Recently, game designer Chad Steingraber talked about how an XRP spot ETF could help increase XRP’s price in two ways.
He says that the two main reasons for a big price rise through ETFs are investment and how useful they are.
The Investment Side
Steingraber’s latest comments add to a previous post where he explained that making ETFs for XRP could cause its price to go up.
He explained a situation where the ETF fund buys XRP from public markets, holds onto the XRP, and then sells shares that are based on the XRP to investors.
He says this will reduce the amount of XRP for sale, increase its demand, and make its price go up.
Steingraber also said that most investors around the world would put their money into an XRP ETF. He thinks these investors plan to keep their investments for over ten years.
The Utility Side
The additional comments explain how XRP can be useful in ETFs. They say that besides being an investment, XRP could also have practical value.
Steingraber suggested that it would work like a normal investment fund, but with a difference.
Steingraber suggested that in this case, XRP would be collected into a “Institutional Liquidity Hub” for more use.
Basically, this means that the ETF’s XRP is not just stored away. Instead, it is used in a special center that helps with transactions, payments, or other uses of XRP.
Steingraber believes that the only way for the price of XRP to go is up, based on these opinions.
But it’s important to remember that both situations are just ideas and depend on the possibility of creating an XRP ETF. Up to now, no big company has started to make one, even though XRP is in a good legal position in the U.S.
Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.