- The U.S. Securities and Exchange Commission (SEC) has approved the launch of three XRP futures-based exchange-traded funds (ETFs) by ProShares
- These ETFs include leveraged and inverse options, providing investors with various strategies to gain exposure to XRP’s price movements
- The approval follows the conclusion of Ripple’s legal battle with the SEC, which had previously cast uncertainty over XRP’s regulatory status.
The U.S. Securities and Exchange Commission (SEC) has approved the launch of the first-ever XRP futures exchange-traded funds (ETFs). ProShares, a major ETF issuer, will introduce three XRP futures products aimed at offering both leveraged and inverse exposure to the cryptocurrency’s price movements. The approval is a major step for XRP, coming after Ripple’s long legal battle with the SEC over whether the token should be classified as a security.
ProShares Gets Green Lights
The SEC’s approval of ProShares’ XRP futures ETFs marks a significant development in the cryptocurrency market. These ETFs, set to launch on April 30, 2025, offer investors new avenues to engage with XRP through regulated financial products. The decision comes in the wake of Ripple’s legal victory over the SEC, which had previously alleged that XRP was an unregistered security, and adds fuel to the notion that a spot XRP ETF is next on the SEC’s list after Bitcoin and Ethereum.
Upon the approval of its proposal, ProShares announced plans to launch three XRP futures-based ETFs: the Ultra XRP ETF (2x leverage), the Short XRP ETF (-1x leverage), and the Ultra Short XRP ETF (-2x leverage). These products are designed to provide investors with leveraged and inverse exposure to XRP’s price movements without directly holding the cryptocurrency. The SEC’s tacit approval allows these ETFs to proceed to market, as no objections were raised during the review period.
Market Implications
The introduction of XRP futures ETFs is expected to enhance liquidity and attract institutional investors to the XRP market. By offering regulated investment vehicles, these ETFs provide a level of legitimacy and accessibility that could drive increased participation. This development aligns with broader trends in the cryptocurrency space, where futures-based ETFs have been instrumental in facilitating market growth and maturity.
While the approval of futures-based ETFs is a positive step, the market continues to anticipate the potential approval of spot XRP ETFs, which would directly track the price of XRP. Analysts suggest that the successful launch and performance of the futures ETFs could pave the way for future spot ETF approvals. Additionally, the resolution of regulatory uncertainties surrounding XRP may encourage further product development and adoption within the cryptocurrency ecosystem.
