#XRPETF Labs holds over 50 billion XRP (accounting for 50% of the total supply). Traditional ETF requirements demand strict separation between the issuer and the asset issuer, making it a major compliance obstacle to prove 'decentralization'.

- Referencing the Grayscale GBTC model, the XRP ETF may need to commit to regular destruction of the custodial tokens, but Ripple's lock-up mechanism has not yet clearly supported this operation.