Do XRP futures ETFs lift the price? An expert explains what you need to know.

crypthub

about 7 hours ago

XRP Futures ETFs and Their Limited Impact

Crypto analyst Jake Claver argues that XRP futures ETFs do not influence the token’s price because they trade cash-settled contracts instead of purchasing real XRP. These funds do not lock away tokens, leaving supply and demand unaffected. Fund managers typically roll futures contracts before expiration, selling tokens immediately if delivered, keeping XRP’s supply untouched. Claver calls this “paper trading dressed up in an ETF wrapper,” emphasizing it creates no real investment pressure.

Spot XRP ETFs and Potential Supply Shifts

Claver highlights that spot XRP ETFs could significantly impact the market by requiring fund managers to buy and hold actual XRP tokens. These tokens are stored by regulated institutions, removing them from circulation and creating scarcity. Each ETF share is backed by real XRP, often five to fifty tokens per share, which remain locked unless sold. This setup mirrors Bitcoin’s growth trajectory, where spot ETFs drove price increases after years of futures trading.

Regulatory Pathways and Market Readiness

The SEC typically requires six months of futures trading before approving spot ETFs. XRP has met this requirement, making spot ETF approval likely. Institutional demand for XRP in a low-liquidity market could trigger intense price discovery. Claver predicts a “mathematical supply shock” as investors compete for limited tokens, marking a turning point for XRP’s next phase.