#XRPETF XRP ETF is an Exchange Traded Fund (ETF) that aims to track the price of XRP (Ripple). This fund allows investors to gain exposure to the price of XRP without the need to buy and store the digital currency directly. Instead, they can purchase shares in the ETF that holds XRP or futures contracts linked to it.

How does XRP ETF work?

XRP ETF operates similarly to other ETFs that track the prices of commodities or indices. Here’s an overview of how it works:

Creating the fund: A financial institution (issuer) creates an ETF by purchasing a quantity of XRP or related financial instruments such as futures contracts.

Custody of assets: The actual XRP or other assets are stored by a qualified custodian to ensure their safety.

Issuing shares: The value of the assets held in the fund is divided into shares, and these shares are offered for trading on exchanges.