Despite rumors that the U.S. Securities and Exchange Commission (SEC) has approved a spot XRP ETF, this information is incorrect. In fact, the latest development involves leveraged futures XRP ETFs and ProShares' Short XRP ETF, which is expected to begin trading on April 30.
It is currently unclear how this rumor has affected XRP's price today, but it has caused confusion within the community, potentially undermining investor confidence.
A spot XRP ETF in the U.S. has not yet emerged.
The cryptocurrency industry is very excited about a potential XRP ETF, especially after an ETF began trading in Brazil last week.
However, there is no shortage of overly enthusiastic individuals who can ignite and spread optimistic rumors. ProShares' new futures ETF has indeed been approved, but this does not affect a spot ETF:
Bitcoin, the first cryptocurrency-focused ETF, achieved a futures ETF before a spot ETF. In some ways, the SEC approving a futures XRP ETF is a positive sign.
The SEC has an upcoming deadline to reject or confirm these proposals, and experts believe the likelihood of approval is quite high. However, this does not change the current reality.
XRP's price has fluctuated over the past 24 hours, with notable adjustments. It cannot solely be blamed on the ETF hype as the cause of all XRP's volatility; many other factors may be contributing to this situation.
Nevertheless, recent rumors have had a clear impact on the cryptocurrency market, even if they are completely false. These inaccurate claims may have affected XRP.
Confusion does not help build a stable industry. Even if these misleading ETF rumors temporarily boost XRP's performance, that is not a sign of the long-term health of the ecosystem. Misinformation can severely damage public trust, especially among retail investors.
For example, Eleanor Terrett commented on these rumors, stating that she is 'truly fed up with all the rude keyboard warriors in this community.'
Clearly, she faced online backlash while trying to clarify the information, even though she was both correct and a reputable source in the cryptocurrency journalism field.
What is the difference between spot ETFs and futures ETFs?
A spot ETF directly holds XRP tokens, providing investors with access to the actual cryptocurrency. These ETFs aim to reflect the real market price of XRP, creating a direct correlation between the fund's value and the spot price of the token.
Currently, spot XRP ETFs have not been approved in the U.S. Applications from companies like Grayscale and Bitwise are under SEC review.
In contrast, leveraged futures ETFs do not hold XRP directly. Instead, they invest in futures contracts predicting the future price of XRP.
Due to daily rebalancing, these ETFs can experience significant volatility and may not be suitable for long-term holding.
Even if these XRP ETF rumors stem from a genuine misunderstanding, they still carry risks. In the future, the community must carefully verify sources and act in good faith to maintain public trust.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.