#XRPETF XRP ETF Definition and Operation Mechanism

**XRP ETF (Exchange-Traded Fund)** is a financial product that tracks the price performance of XRP, allowing investors to buy and sell fund shares through traditional securities exchanges (such as NASDAQ) to gain indirect exposure to XRP without directly holding the cryptocurrency. Its operation mode includes:

1. **Asset Support**: The fund anchors asset value by holding XRP or related derivatives (such as futures contracts).

2. **Trading Method**: Investors trade ETF shares in the secondary market, with prices determined by market supply and demand, while management fees (usually 0.2%-0.95%) are deducted.

3. **Liquidity Advantage**: Compared to direct trading of XRP, ETFs provide higher liquidity and lower trading slippage.