- Social media users explore arbitrage opportunities with an XRP ETF, reflecting on the practice of In-Kind deposits for ETFs.
- Diverse opinions within the XRP community underscore the importance of understanding market cycles and XRP’s unique applications and potential.
The XRP community recently engaged in a spirited discussion sparked by Chad Steingraber, a seasoned game designer and a notable figure within the community, who put forth an ambitious prediction regarding the potential for a 100x premium on an XRP exchange-traded fund (ETF). In a social media post, Steingraber shared his insights into the possible trajectory of an XRP ETF, especially considering the institutional demand that such a financial product could garner.
The actual underlying asset price does NOT have to skyrocket. The fund can trade at MASSIVE Premiums.
Let’s say #XRP breaks ATH @ $5, its ETF fund could literally trade at 100x premium if the institutional demand kicks in.
Yes, that’s right, a $500 #XRP Institution Premium. 👍 https://t.co/bwN6cGmmZd pic.twitter.com/tHyy4fkbeK
— Chad Steingraber (@ChadSteingraber) March 27, 2024
The prospect of launching an XRP ETF has been a focal point of anticipation among XRP enthusiasts, who believe that the introduction of such an investment vehicle could significantly impact the asset’s market value.
Steingraber’s speculation centers around the premise that if XRP were to reach an unprecedented price point of $5, a corresponding ETF fund could experience a dramatic surge, potentially trading at a 100x premium, which would position the ETF shares at an astounding $500.
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This positive perspective on an XRP ETF is anchored in the growing attraction of institutional investors towards the XRP investment product. Steingraber points out that a dramatic rise in XRP’s market price isn’t necessary for the fund to witness significant growth.
He draws a comparison with Grayscale’s investment offering tied to Litecoin (LTC), which enjoys a considerable premium above its net asset value (NAV), regardless of Litecoin’s market price.
When they allow In-Kind, yes you will be able to deposit the asset in exchange for the share value (arbitrage in).
That’s why In-Kind is a big deal.. we will get there, hopefully sooner than later.
— Chad Steingraber (@ChadSteingraber) March 27, 2024
Following Steingraber’s analysis, a user on social media questioned the feasibility of leveraging the anticipated high premium on an XRP ETF for arbitrage by those possessing the actual asset. Steingraber clarified that should issuers permit In-Kind deposits, one could exchange the asset for its equivalent share value to conduct arbitrage.
Nevertheless, he admitted that the practice of In-Kind deposits is yet to become commonplace in the ETF market, yet he remains optimistic about its broader acceptance moving forward.
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Meanwhile, the crypto market has seen varied performances across major cryptocurrencies, with Bitcoin and Ethereum posting gains of 61% and 48% respectively over the last three months, while XRP experienced a slight decrease in value.
This has led some analysts to question XRP’s upside potential in the current bull run. Joshua Jake, a crypto market commentator, suggested that XRP’s performance, more akin to a stablecoin in a bullish market, might indicate limited growth opportunities compared to other digital assets.
Sell your $XRP for these #Altcoins instead if you want to actually make money… pic.twitter.com/quyRNO030z
— Joshua Jake (@itzjoshuajake) March 25, 2024
Yet, within the XRP community, there’s a spectrum of perspectives. Vandell Aljarrah, co-founder of Black Swan Capitalist, alongside Edward Farina, Head of Social Adoption at XRP Healthcare, present opposing views, highlighting the need to grasp market cycles and the distinct possibilities and applications of XRP.
Disregard advice to sell XRP prematurely. We're at the onset of a bullish cycle, with the altcoin season yet to peak & the Bitcoin halving ahead. Understanding market cycles is essential for prudent investment decisions. We haven't even started. The peak will be from 2024 to 2025
— Vandell | Black Swan Capitalist (@vandell33) March 26, 2024
XRP (XRP-USD) is currently priced at $0.627469, witnessing an increase of $0.013940 or 2.27%.
This recent price action occurs within a day’s trading range of $0.605644 to $0.635784. Over the past 52 weeks, XRP has experienced significant fluctuations, trading between $0.412962 and $0.887511.
