April 19, 2024

The recently approved spot BTC exchange-traded funds (ETFs) in the US fueled speculations of a potential XRP ETF within the XRP community.

XRP ETF Premium May Record 100x to $500 Chad Steingraber

In a recent X post, a prominent XRP community member, Chad Steingraber, shared insights on the potential trajectory of an XRP exchange-traded fund (ETF) in light of increasing institutional demand. He predicted that XRP will likely reach $5 if a designated ETF is launched.

Analyst Speculates XRP ETF Could Trade at Massive Premium Amid Institutional Demand

Notably, the XRP community has been calling for efforts from major asset managers, especially BlackRock, to launch an XRP ETF. The community believes such an investment product could positively impact XRP’s market value.

Amid this anticipation, Steingraber, in his March 27 tweet, says the launch of an XRP ETF will significantly influence XRP price, triggering a massive surge to $5.

Steingraber believes a corresponding XRP ETF will also soar to remarkable heights, possibly recording a 100x premium should XRP break the $5 price level. This outlook would put the ETF shares at a value of around $500 each, the XRP community figure says. 

He emphasized that such an incredible surge for an XRP ETF would be possible if more institutions became interested in the investment product. 

However, Steingraber maintained that XRP’s price doesn’t have to shoot up for the fund to grow fast. He compared a potential XRP ETF to Grayscale’s investment product in Litecoin (LTC), noting some interesting things.

According to Steingraber, Grayscale’s Litecoin Fund boasts a considerable premium against its net asset value. While Litecoin is priced at $95.82, institutions are actually paying $253.98 per coin in the fund. Steingraber foresees a potential XRP ETF amassing a similar high premium if institutional interest in the product surges.

In reaction to Steingraber’s claims, a user named Zack wondered if people holding XRP could take advantage of the high premium of the XRP ETF through arbitrage.

In response to the question, Chad Steingraber said people can only deposit XRP and get the same share value for arbitrage if the fund issuers allow in-kind deposits. 

However, Steingraber mentioned that in-kind deposits are still uncommon in the ETF world. But, he is optimistic that such practices might soon become mainstream in the industry. However, its current absence makes it hard for instant arbitrage chances.

Is Ripple’s Native Coinon the Way to $13?

Another technical analyst, Tony “The Bull” Severino, recently shared a bullish price prediction for XRP.

XRP ETF Premium May Record 100x to $500 Chad Steingraber

In the analysis, Severino used a monthly chart to show how XRP’s price has moved in different patterns since 2013. According to the analyst, among these, one pattern seems important for the current price: the five-wave pattern. 

In this pattern, XRP formed a symmetrical triangle that lasted six years. During that time, XRP surged 69,293%, climbing from $0.06144 to its all-time high of $3.3170 before declining 84% to $0.5036.

However, recent strides suggest XRP might be gearing up to break out from the symmetrical triangle. 

Given that, the analyst projects the XRP price to hit a significant high of $13.23, representing an increase of over 1,000% from its current price of $0.622


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