The regulated gateway to invest in XRP.
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It refers to the expectation of the establishment of an Exchange-Traded Fund (ETF) backed by XRP, the native cryptocurrency asset of Ripple's decentralized payment infrastructure. An ETF on XRP would allow indirect exposure to the asset through financial instruments traded on regulated secondary markets, eliminating the need for direct management of private keys or interaction with unregulated cryptocurrency exchanges.
The viability of an XRP ETF is based on strict regulatory criteria, including the legal characterization of XRP (security or commodity), the existence of qualified custodians with secured cold storage solutions, and evidence of a sufficiently liquid, efficient, and manipulation-resistant spot market, according to standards set by entities like the SEC and the CFTC.
The implementation of a potential XRP ETF would potentially increase price efficiency through arbitrage activities, expand the base of institutional investors, and optimize market infrastructure by integrating authorized participants (APs) and specialized market makers in digital assets. It would also favor the legitimization of XRP within alternative and traditional investment portfolios, contributing to the overall maturation of the global crypto-financial ecosystem.
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