Despite rumors that the U.S. Securities and Exchange Commission (SEC) approved a spot ETF for XRP, this is inaccurate. The only new development is that ProShares will launch leveraged and short futures ETFs on XRP, which will begin trading on April 30.
It is unclear how much these false statements have affected the price of XRP today, but they have caused a lot of commotion. Fake crypto news has been gaining momentum lately, and this could negatively impact investor trust.
The spot XRP ETF has not yet appeared in the U.S.
The crypto industry is buzzing with enthusiasm about the XRP ETF, especially after one started trading in Brazil last week.
However, there is no shortage of overly enthusiastic people who can ignite and spread optimistic rumors. The new futures ETF from ProShares has indeed received approval, but this has nothing to do with a spot ETF. Bitcoin, the first category of ETF focused on cryptocurrency, reached a futures ETF before a spot ETF. In a sense, the approval by the Commission of the futures ETF on XRP is a positive sign.
The Commission has an upcoming deadline to reject or confirm these proposals, and experts believe that approval is very likely. Unfortunately, this does not change the reality today.
The price of XRP has fluctuated over the past 24 hours, with noticeable pullbacks. It is unfair to claim that the excitement surrounding the ETF is the source of all XRP movements; several circumstances can contribute to this situation.
Rumors have recently had a noticeable impact on crypto markets, even when they were completely false. These distorted statements could have affected XRP. Confusion does not contribute to building a stable industry. Even if false rumors about ETFs temporarily boost XRP's performance, this is not a sign of long-term health for the ecosystem. Misinformation can significantly harm public trust, especially among retail investors.
For example, Eleanor Terrett commented on these rumors, stating that she is 'very tired of all the rude keyboard warriors in this community.'
Clearly, she has faced hostility online for attempting to clarify news decisions, despite being both correct and a respected source of pro-cryptocurrency journalism.
Spot ETF vs. futures ETF – what’s the difference?
Spot ETFs hold XRP tokens directly, providing investors access to the actual cryptocurrency. These ETFs aim to reflect the market price of XRP in real time. Thus, there is a direct correlation between the fund’s value and the spot price of the token.
At this time, spot ETFs for XRP are not approved in the U.S. Applications from companies like Grayscale and Bitwise are under review by the SEC.
Meanwhile, leveraged futures ETFs do not hold XRP directly. Instead, they invest in futures contracts that speculate on the future price of XRP.
Due to the daily resetting of leverage, these ETFs can experience significant volatility and may be unsuitable for long-term holding.
Even if the rumors about the XRP ETF arose from a genuine misunderstanding, they are still dangerous. In the future, the community should be cautious, verify their sources, and act in good faith to maintain public trust.#Binance #BinanceSquare #Write2Earn #Squar2earn #CryptoNewss $XRP
