#XRPETF XRP ETF is an exchange-traded fund with XRP as the underlying asset. Here is a detailed introduction about it:

Definition and Operating Principle

• XRP ETF is a financial product that holds XRP as the underlying asset and issues fund shares. After investors purchase shares, they can trade these shares on the secondary market like stocks, thereby indirectly gaining exposure to XRP price fluctuations without having to directly buy, store, or manage XRP.

• Its price is primarily determined by the value of XRP but is also influenced by factors such as the fund's net asset value (NAV), which is calculated by dividing the total value of XRP held by the fund by the number of ETF shares outstanding, providing a benchmark for the ETF's market price.

• When the market price of ETF shares is higher than the NAV, authorized participants (AP) can buy XRP and redeem it with the fund in exchange for ETF shares, then sell these shares on the market at a premium; conversely, when the price of ETF shares is lower than the NAV, AP will buy ETF shares and redeem them for XRP, then sell the XRP on the market. This arbitrage mechanism helps keep the ETF price consistent with the NAV.