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Let's analyze together the correlation that exists between the issuance of an ETF on a crypto asset and its value in the CEX market.

The issuance of an ETF on a crypto asset introduces a new regulated investment vehicle that replicates the performance of the underlying asset. This increases accessibility for institutional and retail investors who prefer the familiarity and security of traditional markets.

The injection of capital through the ETF can increase the demand for the underlying crypto asset in CEX (Centralized Exchanges), potentially driving its price upward. The ETF acts as a bridge between traditional finance and the cryptocurrency market, channeling liquidity and expanding the investor base.

However, the price of the ETF and that of the crypto asset on the CEX are not always perfectly aligned due to factors such as management fees, custody costs, and specific supply and demand dynamics of the ETF. Arbitrages carried out by market makers tend to minimize these discrepancies, maintaining a close correlation between the two values.

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