According to crypto analyst Jake Claver, XRP futures exchange-traded funds (ETFs) don’t actually help the token’s 0 explains that these products do not purchase real XRP tokens. Instead, they trade contracts that settle in 1 they don’t buy or lock away tokens, there is no real demand or supply pressure on 2 contrast, spot XRP ETFs could have a much bigger 3 would require fund managers to buy and hold actual XRP tokens, removing them from 4 a result, once these spot ETFs are approved, demand from institutional investors could push prices 5 Claver Explains Why XRP Futures ETFs Don’t Drive Real Demand Jake Claver explains that futures ETFs don’t buy a single XRP 6 are cash-settled contracts, meaning investors are only trading paper agreements, not the tangible 7 managers buy and roll these futures contracts before they expire, and even if delivery ever happens, they immediately sell the tokens right 8 process keeps XRP’s actual supply 9 calls this “paper trading dressed up in an ETF wrapper.” It looks like a real investment in XRP, but it is 10 futures ETFs never hold the actual token, they do not create any pressure on XRP’s 11 is no actual buying demand, and that means no upward push on 12 also notes that this setup only checks a regulatory box for the 13 SEC usually wants six months of futures trading before approving any spot 14 Claver, XRP’s futures ETFs are part of that early stage, not a significant price 15 Spot XRP ETFs Could Trigger A Real Supply Shock While futures ETFs have little real effect, Claver believes spot ETFs could change the 16 futures, spot ETFs require fund managers to buy actual XRP tokens for every dollar 17 tokens are then held in custody by regulated institutions like Coinbase or Anchorage, removing them from the open 18 share of the ETF is backed by real XRP, often between five and fifty tokens per share, and these tokens stay locked unless investors 19 compares this to what happened with 20 ETFs have existed since 2017, but Bitcoin’s real growth only began when spot ETFs launched in 21 to Claver, XRP is now in a similar 22 market has already met the SEC’s futures requirement, meaning spot ETFs could soon be 23 that happens, institutional investors will need to buy large amounts of XRP in a market with very low 24 launch of spot XRP ETFs could trigger intense price discovery and what Claver calls a “mathematical supply shock.” He believes the real move for XRP will start when institutions compete for actual tokens in a market that’s already running 25 ETFs may have opened the door, but spot ETFs could be what finally pushes XRP into its next significant phase.
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