First XRP ETF Spot will debut this Friday
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In the United States, an ETF of XRP of a leverage futures was recently launched.
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The background is from the hashdex firm and will be managed by great investigations.
Next Friday, April 25 will mark the debut in Brazil of the first fund quoted in the stock market (ETF) in cash (Spot) of XRP in the stock market.
As cryptootics has reported, the financial product was presented by the HASHDEX firm and will be managed by great investigations. His name is Nasdaq XRP Index Fund (XRPH11) and will be available in the Brazil Stock Exchange (B3).
After two months in the operational phase, Hashdex and Great Investigations issued a statement to the market to detail the subscription dates, negotiation, fund objective and recommendations for investors.
In the document, the firms detail that the ETF seeks to replicate the variations and profitability of the NASDAQ Reference Price Index XRP (NQXRP), an index created by NASDAQ that reflects the price of the cryptocurrency issued by the Ripple Labs company.
In addition, it is clarified that tomorrow, April 24, it will be the beginning of the subscription and integration of the quotas in the primary market. This is when institutional investors buy directly from the fund, allowing the creation of new fees and contributing capital to acquire the assets that make up the ETF. In this case, to replicate the NQXRP index.
This process It is crucial for the fund to capture the initial resourceswhich are used to build their asset portfolio.
Meanwhile, on April 25, the negotiation of the quotas in the secondary market of the B3 under the XRPH11 ticket will begin. From that day, the product may be exchanged between investors in the stock market, without the fund receiving new contributions, since transactions only imply a change of hands between market participants.
Said more simply, since Friday any investor who has an account on a trading platform, operating in the B3, can buy or sell XRPH11 installments.
It should be noted that Brazil was also a pioneer with the launch of the first ETF based in Solana (Sol), which began to quote on August 29, 2024 in the B3 Stock of Sao Paulo. The product, called QSOL11, was developed by QR ASSET and is under the administration of Vortx.
The United States awaits the approval of the ETF in cash
As Cryptonoticias reported, on April 8, the first 2x leverage ETF was launched in the United States, called “Teucrium 2x Long Daily XRP ETF”.
However, The approval of the ETF al cash will be the true test for XRP. The difference is that these instruments do not directly acquire Ripple’s cryptocurrency, but are based on futures contracts that are linked to the price of the asset.
These contracts allow to agree on the future purchase or sale of XRP at a fixed price in advance, but without the cryptocurrency being exchanged as such, since the liquidation is carried out in cash.
For its part, an ETF Spot is backed by the underlying asset and directly follows the value of XRP, in this case. That is, if the price of cryptocurrency increases, the financial instrument will reflect a similar rise, discounting commissions.
Currently, companies such as Grayscale, Bitwise and 21Shares submitted applications to the United States Stock Exchange and Securities Commission (SEC) and are waiting for an answer to launch their XRP ETFs.
In case they are approved, will allow a regulated route for large investors to access the asset.
Even so, this does not guarantee a positive impact on the price, as has been seen with the ETHher ETFs, the Native Currency of Ethereum, which so far have failed to replicate the success of those of Bitcoin (BTC).
