ProShares has received regulatory clearance to list its new leveraged XRP ETF on NYSE Arca, with trading imminent. The XRP ETF, trading under the ticker UXRP, is designed to offer 2x daily exposure to XRP price movements. According to SEC filings, trading could begin by July 18, aligning with the close of Crypto Week in Washington, D.C.
The XRP ETF does not hold XRP directly but gains exposure through futures and swaps, enabling amplified daily returns. This structure allows investors to access potential gains from XRP price moves without owning the asset. Market participants are closely watching this launch due to increased interest in crypto-based ETFs.
ProShares is the first firm to list a leveraged ETF on NYSE Arca, marking a key milestone in crypto-linked fund approvals. The fund appeared on the DTCC eligibility list earlier in July, a required step before public trading. UXRP’s listing comes as XRP gains over 30% in a week amid growing ETF enthusiasm.
ProShares Receives SEC Clearance for Leveraged XRP ETF
NYSE Arca has officially certified the ProShares Ultra XRP ETF under the ticker UXRP, following the SEC’s acknowledgment. This clearance enables the fund to trade publicly, subject to standard operational readiness. The filing dated July 14 confirms the fund’s status for listing.
ProShares uses derivatives like futures and swaps instead of directly holding XRP, offering amplified exposure to price changes. The fund targets 2x the daily return of an XRP index, appealing to short-term, high-risk investors. This leveraged approach allows gains on bullish days to be potentially doubled.
UXRP’s approval makes it the first leveraged ETF to reach listing status on a major U.S. exchange. ProShares had earlier launched similar leveraged products for Bitcoin and Ethereum. The fund’s unique strategy aims to meet the growing demand for advanced crypto exposure tools.
Additional XRP Funds Still Await Clearance
ProShares also plans to introduce inverse XRP ETF products, though neither has cleared final operational steps. The proposed Short XRPS seeks -1x daily performance, while UltraShort XRP ETF (RIPS) aims for -2x daily returns. Both funds remain absent from the DTCC list as of July 15.
These products would allow investors to profit from falling XRP prices, using the same derivative-based structure. Unlike UXRP, these inverse ETFs are designed for bearish positions and short-term trading. The SEC has not yet granted full clearance for XRPS or RIPS.
According to a July 11 post-effective amendment, ProShares expects all three ETFs to debut on July 18. If launched on that date, the event would coincide with the conclusion of Crypto Week in Washington. Market observers expect this timing could boost awareness of XRP-related investments.
Market Responds Ahead of ETF Launch
XRP’s price has surged approximately 30% over the past week amid growing anticipation for the ETF launch. Investor sentiment appears to reflect optimism surrounding the approval of ProShares’ leveraged offering. This trend aligns with historical market reactions to ETF product news.
At least 12 asset managers, including Grayscale, Bitwise, WisdomTree, and 21Shares, have filed for XRP ETF approvals. Analysts from Bloomberg estimate a 95% chance of SEC approval for a spot XRP ETF in the near term. Although UXRP is a futures-based product, it represents growing institutional acceptance.
The launch of leveraged and inverse XRP ETFs signals broader progress in crypto fund integration into regulated markets. ProShares continues to lead in this area, building on its prior success with other crypto-based ETFs. This development could set the stage for more specialized funds entering the market.
Summary
ProShares has secured approval from NYSE Arca to list its leveraged XRP ETF, the UXRP, with trading expected to begin by July 18. The fund uses futures contracts to provide 2x daily exposure to XRP price movements. Two inverse XRP ETFs from ProShares are still pending clearance.
FAQs
What is the ProShares Ultra XRP ETF?
The ProShares Ultra XRP ETF (UXRP) is a leveraged fund targeting 2x daily performance of an XRP index through futures.
When will the ProShares XRP ETF begin trading?
According to regulatory filings, trading may start on July 18, following DTCC eligibility and SEC certification.
Does the Ripple ETF hold XRP directly?
No, the fund gains exposure through derivatives like futures and swap agreements, not by directly holding XRP.
What other XRP ETFs has ProShares proposed?
ProShares has proposed the Short XRP ETF (XRPS) and UltraShort XRP ETF (RIPS), which seek inverse exposure to XRP.
Are other firms launching ETFs?
Yes, companies like Grayscale, WisdomTree, and 21Shares have submitted applications for various types of ETFs.
Glossary of Key Terms
XRP ETF – A type of exchange-traded fund that offers exposure to XRP’s market performance without owning the asset directly.
Leveraged ETF – A fund designed to amplify daily returns, often using derivatives.
Inverse ETF – A fund structured to deliver the opposite of an asset’s daily performance.
NYSE Arca – A U.S.-based exchange that lists ETFs and equity securities.
Futures Contract – A financial contract obligating the buyer to purchase, or the seller to sell, an asset at a predetermined future date and price.
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