According to news reports, the US Securities and Exchange Commission (SEC) has given the go-ahead for ProShares Trust to launch three XRP futures-based exchange-traded funds (ETFs). ‘Following the SEC filings released last week, the ProShares XRP futures ETFs: ‘Ultra XRP ETF, Short XRP ETF, and ‘Ultra Short XRP ETF’, will start trading on ‘April 30 and offer leveraged and inverse exposure to XRP’s price through the ‘XRP Index.
- Understanding ProShares XRP Futures ETFs: How They Work
- Ripple Gains Ground: Ripple-SEC Relations Ease Amid ETF Developments
- XRP Price Reacts to Futures ETF Approval, Defies Broader Market Trends
- Expert Insight: What’s Next for XRP After the Futures ETF Launch
- Conclusion: Futures ETF Approval is a New Chapter for XRP
- Glossary
These will be the second, third and fourth ‘XRP-related ETFs in the US, following Teucrium’s XRP futures ETF which started trading on the ‘New York Stock Exchange (NYSE) earlier this month and got a “terrific response”.
Understanding ProShares XRP Futures ETFs: How They Work
While the approval of ProShares XRP futures ETFs is a big deal, it’s important to note that futures-based ETFs are different from spot-based ETFs. ‘ProShares’ new funds will allow investors to bet on XRP’s ‘price without actually owning the cryptocurrency itself. Instead, the funds will track XRP’s price through the XRP Index using futures contracts.
The three ETFs will cater to different investment strategies: ‘Ultra XRP ETF will deliver 2x leveraged exposure to XRP’s daily price movements; Short XRP ETF will provide inverse (-1x) exposure, so investors can profit when XRP prices go down and Ultra Short XRP ETF will offer double-inverse (-2x) exposure, so investors can maximize gains when XRP prices plummet.
ProShares has a pending application for spot XRP ETFs but that’s still under review. Meanwhile, the first spot XRP ETF by Hashdex has already launched in Brazil, ‘showing global demand for XRP investment products.
Ripple Gains Ground: Ripple-SEC Relations Ease Amid ETF Developments
The approval of ProShares XRP futures ETFs is a sign’ of a bigger thawing of relations between Ripple Labs and the SEC. For years, Ripple fought regulators over allegations that XRP was an unregistered security. In December 2020, the SEC sued Ripple, claiming it conducted unlawful securities offerings.
In March 2025, Ripple CEO ‘Brad Garlinghouse announced that the SEC had agreed to drop its appeal of the July ruling, pending Commission approval. “The case is over. It’s done,” Garlinghouse said on X, calling the outcome a “historic win” for crypto.
April 10th, Ripple and the SEC filed to stay litigation to discuss settlement, which could lead to an agreement on how digital tokens are classified in US law.
At an SEC Crypto Task Force roundtable on April 26th, SEC Chairman Paul Atkins said “The market itself seems to indicate that the current framework badly needs attention” and criticized the approach of his predecessor Gary Gensler.
XRP Price Reacts to Futures ETF Approval, Defies Broader Market Trends
The news of the SEC approving the ProShares XRP futures ETFs had an immediate impact on XRP’s price action. Within hours of the announcement, XRP rose to $2.28, as at the time of this publication, while most other major cryptocurrencies were down or up marginally.
Analysts noted XRP was the best performing token among the top 10 by market cap, with Bitcoin up only 0.11% during the same period.
It looks like investors are getting more enthusiastic about XRP, especially with the futures ETFs offering institutional players a regulated, CFTC compliant way to get exposure to XRP price movements without the complexity of holding tokens directly.
Expert Insight: What’s Next for XRP After the Futures ETF Launch
Financial analysts see the approval of the ProShares XRP futures ETFs as a change not just for XRP but for altcoin ETFs in general.
Until now, Bitcoin and Ethereum have dominated ETF narratives, “The approval of XRP futures ETFs signals opens the door for more diversified crypto exposure, especially if Ripple’s ongoing discussions with the SEC produce clear guidelines.”
But futures based products also come with higher risks due to leverage and volatility. Investors should recognize that while ProShares XRP futures ETFs offer accessible exposure, they are not risk free.
Meanwhile, speculation continues around a potential approval for spot XRP ETFs. Some analysts think ProShares’ success with the futures ETFs could help their spot application, but timelines are unclear.
Conclusion: Futures ETF Approval is a New Chapter for XRP
The approval of the ProShares XRP futures ETFs is a big deal for Ripple, XRP holders and the US crypto landscape. As institutional investors look for safe, regulated exposure to digital assets, these products will change the game for altcoins beyond Bitcoin and Ethereum.
Ripple’s relationship with the SEC and XRP’s position in the market is setting up for more growth and maybe faster regulatory clarity for the entire digital asset space.
Now the focus is on April 30 when the ProShares XRP futures ETFs go live and the ongoing discussions around spot XRP ETFs that could change the face of crypto investing.
FAQs
What are the ProShares XRP futures ETFs?
The ProShares XRP futures ETFs are three ETFs that offer leveraged and inverse exposure to XRP’s price through futures contracts not ownership.
How are ProShares XRP futures ETFs different from a spot XRP ETF?
Unlike spot ETFs that require you to buy and hold XRP, the ProShares XRP futures ETFs allow you to bet on XRP’s price through futures contracts tied to the XRP Index.
Will a spot XRP ETF be approved soon?
ProShares has a pending application for a spot XRP ETF but no timeline has been given. Analysts think success with futures ETFs could speed up the process.
What will this ETF approval mean for the broader crypto market?
The SEC approval could open the door for other altcoin ETFs, meaning a more open regulatory stance on diversified crypto products.
Glossary
XRP Futures ETF: An ETF that gives you exposure to XRP’s price through futures contracts.
Spot ETF: An ETF that tracks the current ‘market price of a commodity or asset, you need to own that asset.
Leveraged ETF: A fund that amplifies ‘returns of an underlying asset using financial derivatives.
Inverse ETF: A fund that profits from ‘a decline in the value of an underlying benchmark.
CFTC: Commodity Futures ‘Trading Commission, the US regulatory body that oversees futures and derivatives markets.
References
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