Definition and Mechanism of XRP ETF

XRP ETF (Exchange-Traded Fund) is a financial product that tracks the price performance of XRP, allowing investors to buy and sell fund shares through traditional securities exchanges (such as NASDAQ), indirectly gaining exposure to XRP without directly holding the cryptocurrency. Its operating model includes:

1. Asset Support: The fund anchors the asset value by holding XRP or related derivatives (such as futures contracts).

2. Trading Method: Investors trade ETF shares in the secondary market, with prices determined by market supply and demand, while management fees (typically 0.2%-0.95%) are deducted.

3. Liquidity Advantage: Compared to directly trading XRP, ETFs offer higher liquidity and lower trading slippage.