In a move that has captured the attention of the cryptocurrency world, the U.S. Securities and Exchange Commission (SEC) has approved an XRP Futures Exchange-Traded Fund (ETF) . While the approval marks a significant step forward for XRP’s presence in traditional financial markets, many experts, including crypto influencer John Squire, caution that it is not the game-changing event many had hoped for. What’s the Difference Between a Spot and Futures ETF? To understand the implications of the approval, it’s important to grasp the difference between a Spot ETF and a Futures ETF. An ETF is an investment product that allows investors to trade an asset on traditional markets without owning it. The key distinction is that a Spot ETF buys and holds the actual asset, in this case, XRP tokens. This creates real demand for the token, potentially pushing the price up as the supply decreases. The SEC just approved an $XRP ETF But it’s not what many people think. It’s not a Spot ETF. It’s a Futures ETF. The difference? A Spot ETF buys and holds real XRP, creating real demand. A Futures ETF only bets on XRP’s price without touching a single real token. What… pic.twitter.com/EaqCWuOtM4 — John Squire (@TheCryptoSquire) April 27, 2025 In contrast, a Futures ETF doesn’t involve the purchase of physical XRP. Instead, it allows investors to speculate on the price movements of XRP without owning the asset. While it provides exposure to XRP, it doesn’t generate the same buying pressure that would influence the actual supply of tokens. The Benefits of the XRP Futures ETF Despite not directly affecting XRP’s supply, the approval of the Futures ETF still carries significant benefits. First and foremost, it offers increased institutional exposure. Futures ETFs appeal to large institutional investors who want to gain exposure to an asset without the hassle of owning it. This approval marks a major step in bringing XRP into traditional finance, where it may gain further recognition and credibility. Additionally, the ETF approval helps to amplify the positive narrative surrounding XRP’s adoption. As institutions enter the market, XRP’s credibility increases, drawing more attention from investors and the financial media and solidifying its market presence. Drawbacks of the Futures ETF While the XRP Futures ETF offers some advantages, it has its drawbacks. The most significant downside is that it doesn’t create real buying pressure for XRP. Since no physical tokens are purchased, there is no direct demand for XRP. This means that the price may not see the upward movement typically associated with increased demand for a cryptocurrency. Moreover, Futures ETFs are known for their volatility. They are subject to speculative trading, which can cause price swings that may not accurately reflect the asset’s true value. Additionally, Futures contracts often come with hidden costs, such as rollovers, slippage, and management fees, which can diminish potential returns for investors. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 The Real Catalyst: Spot ETF Approval Despite the positive aspects of the XRP Futures ETF, experts like John Squire argue that the real turning point for XRP will come when the SEC approves a Spot XRP ETF . A Spot ETF would directly purchase and hold XRP tokens, creating real demand for the asset. Reduced supply could drive up demand, potentially leading to a significant price increase and greater market impact. Without a spot ETF approval, the market will likely remain a mix of speculation and institutional interest, lacking the price surge that real-world adoption would bring. While the Futures ETF is a notable achievement for XRP’s legitimacy, it isn’t the breakthrough many expect. A Step Forward, but Not the Final Milestone In summary, while the SEC’s approval of the XRP Futures ETF is a significant milestone, it isn’t the catalyst that will trigger mass adoption or a surge in price. The approval opens the door for institutional investors and bolsters XRP’s credibility within traditional finance, but it does not create the same demand pressure that a Spot ETF would. As John Squire points out, the real market-shifting event will come when XRP can be accessed through a Spot ETF, leading to genuine demand and potential price appreciation. Until then, patience and strategic investment will be key for those looking to position themselves ahead of the next big move in the XRP market. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post SEC Just Approved An XRP ETF, But… appeared first on Times Tabloid .
