According to XRP analyst Chad Steingraber, large investment funds are about to buy XRP en masse. “The price has to go up. There is no plan B.”
XRP ETFs are draining the market
The first XRP ETFs are now active. Canary Capital’s Canadian fund XRPC kicked off on November 13 with an impressive inflow of $245 million. Four different funds have now together attracted almost $644 million in new capital.
Yet the XRP price remains remarkably stable around $2.20. Despite the billions in interest, it has not been possible to make a real breakthrough. The price has been hitting stiff resistance around that level for three days.
But according to XRP analyst Chad Steingraber, this is just the calm before the storm. He expects the ETFs to be extremely aggressive in the coming year, just as was the case with the Bitcoin ETFs previously. “The price has to rise,” he says. “Otherwise these funds will soon buy out the entire circulating supply.”
‘XRP cannot come out of Ripple’s escrow’
Some analysts believe XRP ETFs could purchase their tokens from Ripple’s monthly escrow issuances, which would limit the impact on the price. But according to Steingraber, that is a misconception. ETFs simply don’t have time to wait for that.
The so-called “authorized participants” who arrange the purchase for ETFs must purchase XRP within two days as soon as there is an inflow. This requires immediate availability. Ripple would then have to release its entire monthly billion tokens from escrow to Ripple Prime in advance, hoping the funds hit at that point.
According to Steingraber, this is not only impractical, but also financially unwise. “They would sell their tokens for as little as $2 when they would be better off waiting for the price to go up,” he says. “That makes it unlikely that Ripple will deliver in that way.”
ETFs create price pressure, not a way out
Steingraber points to the experience with Bitcoin ETFs as an example. In 2024, more than 35 billion dollars flowed in in ten months, while only two months showed outflows. This continued influx created scarcity on the market and drove up the price. According to him, XRP could follow a similar path, especially if ETFs rely on open market purchases.
At an XRP price of $2.20, an inflow of $1 billion will yield approximately 454 million tokens. But if the price rises to $6, that number drops to just 166 million. “Only a higher price can maintain the balance,” says Steingraber. “There is no plan B.”
Source: https://newsbit.nl/de-xrp-prijs-moet-stijgen-waarschuwt-expert-er-is-geen-plan-b/
