The rumor that the SEC has approved a spot XRP ETF is not true. The new development is that ProShares' leveraged and Short XRP futures ETF will start trading on April 30th.
It is unclear how much these false claims affected the XRP price today. However, they caused a lot of commotion. Recent fake cryptocurrency news has been surging, which can negatively impact investor confidence.
No Spot XRP ETF in the US Yet
The cryptocurrency industry is full of passion for XRP ETFs. Especially since trading started in Brazil.
However, there are no shortage of people with excessive enthusiasm who spread and propagate rumors. ProShares' new futures ETF has actually been approved, but this is unrelated to a spot ETF:
UPDATE: a lot people posting/reporting that @ProShares will be launching XRP ETFs on April 30th. We've confirmed that's not the case. We don't have a confirmed launch date yet but we believe they will launch — and likely launch in the short or possibly medium term.
Bitcoin was the first cryptocurrency-focused ETF category, achieving futures ETFs before spot. The SEC's approval of XRP futures ETF is a positive signal.
XRP's price has moved in a zigzag over the past 24 hours with a noticeable retreat. It would not be fair to claim that high interest in ETFs is the cause of all XRP movements. Several situations could contribute.
Confusion does not help build a stable industry. False ETF rumors may temporarily boost XRP's performance, but this is not a signal of long-term ecosystem health. Misinformation can significantly damage public trust, especially among retail investors.
For example, Eleanor Terrett mentioned these rumors, claiming "I'm really tired of the rude keyboard warriors in this community".
She says she faced online hostility despite trying to clarify news decisions. She is a respected source of accurate and crypto-friendly journalism.
Spot ETF vs Futures ETF... What's the Difference?
A spot ETF directly holds XRP tokens, providing investors exposure to the actual cryptocurrency. These ETFs aim to reflect XRP's real-time market price. Therefore, there is a clear correlation between the fund's value and the token's spot price.
Currently, no spot XRP ETF is approved in the US. Applications from companies like Grayscale and Bitwise are under SEC review.
Meanwhile, leveraged futures ETFs do not directly hold XRP. Instead, they invest in futures contracts that speculate on XRP's future price.
Due to daily resets of leverage, these ETFs can experience significant volatility and may not be suitable for long-term holding.
Even if these XRP ETF rumors stem from genuine misunderstandings, they remain dangerous. Moving forward, the community must carefully review sources and act in good faith to maintain public trust.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
