XRP's process of compliance in the cryptocurrency space is accelerating through ETFs

🔥 【#XRPETF 's 'Impossibility Triangle': The Ultimate Test of Law, Liquidity, and Ecological Competition】

💡 In-depth Perspective: If the XRP spot ETF is approved, it will face three unique challenges, far exceeding the complexity of BTC/ETH ETFs:

1️⃣ Custody Dilemma:

- Ripple Labs holds over 50 billion XRP (accounting for 50% of the total supply), traditional ETFs require issuers to be strictly separated from asset issuers, making it the biggest compliance hurdle to prove 'decentralization'.

- Referencing Grayscale's GBTC model, the XRP ETF may need to commit to regularly burning custody tokens, but Ripple's lock-up mechanism has yet to clearly support this operation.

2️⃣ Liquidity Layering Risk:

- The depth of the XRP spot market is insufficient (the current Binance order book spread is three times that of BTC), ETF market makers may face high slippage costs, leading to management fees soaring above 1.5% (compared to IBIT's 0.25%).

- After the U.S. trading platform delisted XRP due to litigation, liquidity is highly concentrated in the Asian market, and time zone differences may trigger significant fluctuations in the ETF's net asset value.