The introduction of XRP exchange-traded funds was supposed to mark a defining moment for the asset’s market trajectory. Many investors expected ETF demand to translate directly into upward price momentum for XRP, mirroring what spot Bitcoin ETFs achieved for BTC. Instead, recent trading sessions have exposed a striking disconnect that has reignited debate around how ETFs actually interact with crypto markets.
That disconnect drew sharp commentary from Chad Steingraber, a prominent game designer and long-time XRP advocate, who addressed the issue directly in a post on X. His remarks shifted the focus away from short-term price action and toward the structural realities of how XRP ETFs function within traditional financial markets.
Why XRP ETFs Do Not Directly Move Price
Steingraber explained that XRP ETFs function as paper instruments rather than direct conduits to the spot market. Investors who buy ETF shares gain price exposure to XRP without necessarily triggering the purchase of XRP tokens on-chain or on crypto exchanges. Because of this structure, ETF activity does not automatically affect XRP’s circulating supply or immediate demand.
The real interesting part is the disconnect between the XRP ETF’s and the price of XRP itself while trading during the day.
The ETF is a paper share and has no impact on the price, so the XRP asset could be tanking and the ETF could be going wild with volume and inflows.
— Chad Steingraber (@ChadSteingraber) January 30, 2026
This distinction creates a scenario where XRP can decline during the trading day while the ETF tied to it posts strong volume and inflows. The ETF reflects investor interest in exposure, but it does not guarantee corresponding pressure in the spot market.
Strong ETF Inflows Tell Only Half the Story
Since their launch, XRP ETFs have attracted notable institutional interest. Per previous Timestabloid report, XRP-related ETFs have already recorded over one billion dollars in cumulative inflows, alongside consistently elevated daily trading volumes. These numbers signal growing acceptance of XRP exposure within regulated investment frameworks.
For many market participants, those inflows fueled expectations of a rapid price response. The logic seemed straightforward: if capital flows into XRP-linked products, the underlying asset should rise. However, Steingraber’s comments underscore why that assumption often fails.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
XRP Price Action Remains Detached
Despite ETF enthusiasm, XRP’s price has remained under pressure. As of report time, XRP trades at $1.74, under the $2.00 level, reflecting broader weakness across the crypto market. Bitcoin trades near the $82,000 region, while Ethereum and other major altcoins continue to struggle amid cautious risk sentiment.
This divergence reinforces Steingraber’s central argument. ETF demand can surge independently of spot-market conditions, especially when macro uncertainty, liquidity constraints, and derivatives positioning dominate price behavior.
Rethinking ETF Expectations for XRP
The XRP ETF discussion highlights a broader misunderstanding around what ETFs are designed to do. ETFs increase accessibility, regulatory comfort, and market participation, but they do not automatically drive utility or spot demand. Meaningful price appreciation for XRP still depends on real usage, liquidity depth, and sustained adoption of the XRP Ledger.
Steingraber’s perspective serves as a timely reality check. XRP ETFs may flourish on traditional exchanges, but XRP’s market price will continue to follow its own path until structural demand in the spot market aligns with institutional interest. Until then, ETF optimism and XRP price action may remain disconnected.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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