XRP ETF Price Could Surge by Up to 100x
XRP ETF Price Could Surge by Up to 100x, Claims Chad Steingraber
Chad Steingraber, a well-known figure within the XRP community and an experienced game designer, has recently emphasized the potential for a significant increase in the value of XRP ETF.
In his post on the X platform, Steingraber shared insights regarding the possible direction of development for the XRP exchange-traded fund (ETF) in response to growing interest from institutions.
It's worth noting that the XRP community has been urging asset managers, particularly BlackRock, to introduce an XRP ETF. They anticipate a substantial increase in its market value upon the introduction of such an investment product.
In his analysis, Steingraber speculated on the price at which shares of the XRP ETF could be sold. He suggested that if the price of XRP surpasses $5, the corresponding ETF could potentially see a significant surge, even reaching a 100x premium. This would mean the ETF shares could reach as high as $500.
Steingraber emphasized that such a high premium would be feasible, especially if more institutions become interested in XRP as an investment product.
However, it's important to note that the market price of XRP itself doesn't necessarily have to spike for the XRP ETF to experience significant growth. Steingraber drew parallels to Grayscale's investment product associated with Litecoin (LTC).
Currently, the Grayscale Litecoin Fund commands a substantial premium over its net asset value (NAV). Despite Litecoin's market price being around $95.82, institutions are paying a premium reaching up to $253.98 for the equivalent of Litecoin within the fund.
Steingraber anticipates that the XRP ETF could enjoy a similar high premium due to increasing institutional interest.
While acknowledging that in-kind deposits remain a significant issue in the ETF market, Steingraber expressed optimism that such practices will become more widespread in the near future.
In summary, this analysis remains speculative as no asset manager has yet applied for an XRP ETF, despite consistent calls for its introduction. However, with growing institutional interest and potential approval of such a product, the XRP ETF could experience a significant increase in value, potentially providing substantial benefits for investors.
