New XRP ETF filing hits the market, but there’s something interesting about it | Bitcoinist.com

Roundhill Investments has filed an amended registration statement on its behalf XRP ETFthat it could launch as early as January 29. Notably, the XRP fund is different from the spot

Roundhill File Form N-1A for XRP ETF

Roundhill has submitted an application post-effective change for its XRP Covered Call Strategy ETF, noting that the filing was intended to delay the fund’s effectiveness until January 29. In line with this, the fund could launch this month unless another amendment delays its effectiveness. The potential launch of Roundhill’s XRP ETF could provide a big boost to the altcoin as the fund offers another opportunity to institutional investors to gain exposure to the sign.

Roundhill’s XRP fund is different from it spot XRP ETFsas it does not provide spot exposure to the altcoin. Instead, it seeks to provide current income and exposure to the price returns of one or more ETFs that offer exposure to XRP and whose shares trade on a US-regulated exchange. Basically, the fund tracks the performance of other XRP ETFs that offer direct exposure to the altcoin and do not invest directly in the altcoin.

Roundhill’s XRP ETF prospectus also disclosed that the Fund seeks to achieve its investment objectives by utilizing a synthetic covered call strategy that produces current income. When tracking the price returns of other XRP ETFs, the Fund is not limited to spot XRP funds. It can also track the price returns of ETFs that gain exposure to XRP through investments in exchange-traded futures contracts that use XRP as a reference asset.

What the filing confirms for the Altcoin

In one X messageCrypto expert Richard stated that Roundhill’s XRP ETF filing confirms that XRP is an approved underlying for regulated derivatives. He further noted that this means that XRP-linked options are allowed within an ETF wrapper and that risk committees, counterparties and clearing structures have already been signed.

Richard noticed that too covered call ETFs do not appear first and only come into view after an asset has been legally and structurally accepted. Meanwhile, the expert alluded to the fact that the sole purpose of the latest filing was to delay its effectiveness. He explained that this means the product structure is complete, approval is not an issue, and timing is the variable.

The expert further stated that Roundhill is not trying to gain the advantage, but simply monetizing XRP’s volatility. As such, they serve a different purpose than the spot XRP ETFs, although this fund shares the same assets and pipeline. Richard added that this is derivatives validation, not price discovery, a development he said only occurs when an asset is institutionally cleared.

At the time of writing, the XRP price is trading at about $1.84, down nearly 2% in the past 24 hours, according to facts from CoinMarketCap.

Featured image of Peakpx, chart from Tradingview.com

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