Are XRP ETFs About To Act Like Banks? Expert Thinks So
US Senate debate over a bill called the Clarity Act has reignited discussion about XRP Reports and investor guides show that ETF structure matters for taxes. ETFs often use in-kind creation and redemption to avoid routine capital gains distributions at the fund level, which helps make ETFs tax-efficient in many cases. But tax consequences for token holders depend on how transactions are carried out and on the product’s legal structure. Under current US rules, transfers that change the form of an asset can create taxable events for the person handing over the asset, and fund-level distributions can still produce tax bills for investors.What Taxes Might Look Like
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According to Chad Steingraber, the in-kind structure gives XRP holders a regulated place to park their tokens when they want safety and oversight.
Investors, Steingraber believes, may favor ETFs once the Clarity Act clarifies rules. The appeal is not the technical steps but the confidence of holding XRP in a regulated, organized product. For him, ETFs offer a safer way to manage tokens while still keeping access to them when needed.
Featured image from Unsplash, chart from TradingView
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