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- The creation of an XRP ETF could raise its price by decreasing available supply and increasing demand.
- Resolving the legal challenges between XRP and the SEC is essential to facilitate new investments and raise its value.
For XRP, the possible introduction of an Exchange Traded Fund (ETF) could mark a before and after in the cryptocurrency market, boosting its value and attracting new investors thanks to its usefulness and attractiveness as an investment.
Chad Steingraber, a cryptocurrency analyst and professional game designer, has shared his insights on how an XRP ETF could significantly impact the value of this digital currency, redefining the market by making XRP more accessible and attractive to a broader spectrum of investors.
Steingraber suggests that, rather than measuring XRP’s value cap by its market capitalization, one should consider “Market Value,” a metric that combines transaction volumes, global liquidity, total value locked in, and investor sentiment.
By acquiring XRP and keeping it out of circulation, the ETF would decrease the available supply of the token, while increasing demand. This balance is expected to boost the value of XRP, benefiting current holders and enticing new market entrants.
In turn, Steingraber highlights a compounding strategy to favor the value of XRP through the ETF. On theutility side, the ETF could transform XRP into a liquidity core for institutions, generating a hub that would allow investors to actively employ the token, which could increase its value .
From an investment perspective, the creation of an XRP ETF is expected to motivate investments, further driving demand and contributing to a rise in its value. This approach highlights the various benefits that the ETF would bring to the XRP environment, beyond speculation, including practical utility and investment appeal.
The fate of XRP and the viability of an ETF are tied to the resolution of current legal challenges between XRP and the U.S. Securities and Exchange Commission (SEC). Steingraber notes that resolving this legal dispute is essential to open the way for further investment in XRP.
A positive outcome could be the prelude to an influx of fresh capital into the market, which is expected to lead to a notable increase in XRP’s value between 2024 and 2025, reaching what is anticipated to be the maximum peak of its value.
The future of XRP, according to Steingraber, involves not only banks and large institutional investors through ETFs, but also a wide range of applications in public projects such as video games, music and movies.
This broad spectrum of use and mass adoption promises to solidify XRP not only as a critical digital asset but as a fundamental pillar in the new global financial paradigm.
As legal challenges are overcome and new financial products such as ETFs are introduced, we could see a strengthening in the legitimacy and stability of the crypto sector, attracting a broader spectrum of investors.
