#XRPETF
XRP ETFs are exchange-traded funds designed to track the price of XRP, allowing investors to gain exposure to the cryptocurrency through traditional brokerage accounts. Here's what you need to know¹:
- *What is an XRP ETF?*: An investment fund that tracks the price of XRP, providing a regulated and familiar way to invest in XRP without directly managing digital assets.
- *How does it work?*: The fund holds XRP or related financial instruments, and shares are traded on stock exchanges, reflecting the price movements of XRP.
*Recent Developments:*
- *First XRP Spot ETF*: Brazil's main stock exchange, B3, has launched the first-ever XRP spot ETF, Hashdex Nasdaq XRP Fundo de Índice, which tracks XRP's price using the Nasdaq XRP Reference Price Index.
- *US Filings*: Two major investment firms, Bitwise Asset Management and Canary Capital, have filed proposals with the US Securities and Exchange Commission (SEC) for XRP ETFs.
- *Potential Approval*: XRP ETFs might be approved soon, with some predicting approval by late 2025, depending on regulatory developments and the ongoing lawsuit between Ripple and the SEC.² ³
*Benefits and Risks:*
- *Benefits*: XRP ETFs offer accessibility, regulation, and reduced fraud risk, making it easier for investors to gain exposure to XRP.
- *Risks*: Regulatory uncertainty, liquidity, and price discovery challenges may affect XRP ETF approval and performance.
*Current Prices:*
- XRP is currently trading at $2.18, with a market cap of $130.19 billion.
- 21Shares XRP ETP is trading at $61.52 in the Netherlands and $2.18 in Switzerland.⁴ ⁵