Alex The crypto community is buzzing about the XRP ETF and with good reason. Many institutional and retail investors seek simple methods to access XRP without managing the token directly. That’s where Spot ETFs and Futures ETFs come into play. Each of these ETF types attempts to capture value based on XRP, but they have different mechanisms. Let me simplify the comparisons.
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What is XRP Spot ETF?
A Spot ETF keeps the underlying asset, which is XRP, in its custody. Whenever you purchase a share of an XRP Spot ETF, the fund buys XRP on the market and stores it in a secure vault. Therefore, the price of the ETF closely tracks the actual market price of XRP.
Benefits of a Spot ETF:
Real-time access to the value of XRP
Long-term investors always find such ETFs easier to comprehend and track.
Lowers the burden of managing crypto wallets with associated private keys
Drawbacks:
Meeting the U.S. SEC is a hurdle in obtaining regulatory approval.
Liable to hold XRP, the fund needs to ensure security, custody, and regulatory protocol.
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What is XRP Futures ETF?
A Spot ETF is different from a Futures ETF which does not hold XRP in its portfolio.add d more updates visit blog today trending
