Chad Steingraber has voiced strong opposition to the notion that XRP exchange-traded funds (ETFs) could directly acquire tokens from Ripple's escrow supply. His insights shed light on the operational challenges that such a strategy would entail, and the source reports that this perspective is gaining traction among industry experts.
Urgency in Token Acquisition for ETFs
Steingraber emphasizes that authorized participants, who are tasked with obtaining tokens for the creation of ETFs, must act swiftly to secure the underlying assets. Typically, this process needs to be completed within a two-day window following new inflows.
Challenges with Ripple's Escrow System
This urgency presents a significant hurdle when considering Ripple's escrow system, which releases tokens on a fixed monthly schedule. According to Steingraber, this lack of flexibility makes it impractical for ETFs to depend on Ripple's escrow to satisfy immediate market demand.
Recently, the cryptocurrency landscape has seen XRP and Cardano rise as key players, each with distinct narratives that attract investor interest. For a deeper understanding of their market positions, you can read more in this article: XRP and Cardano.
