ProShares is set to launch three exchange-traded funds (ETFs) linked to XRP this week, following formal approval from the U.S. Securities and Exchange Commission (SEC).
According to regulatory documents, the newly introduced products consist of an Ultra XRP ETF offering a 2x leveraged exposure, a Short XRP ETF, and an Ultra Short XRP ETF featuring -2x leverage.
The 2x leveraged ETF is designed to provide double the daily performance of XRP prices, while the -2x leveraged version aims to deliver twice the inverse performance of XRP’s daily returns, enabling investors to potentially profit when the value of the token declines.
Image Source: SEC
ProShares Launches XRP ETFs Amid Ongoing Spot Approval Discussions
The funds are scheduled to commence trading on April 30, 2025, marking a significant development for XRP-related investment vehicles in the U.S. However, approval for a spot XRP ETF remains pending.
Several filings, including one from asset manager Grayscale, are currently under SEC review, with a crucial decision deadline set for May 22.
This initiative by ProShares follows the recent introduction of the industry’s first XRP futures ETF by Teucrium earlier this month, which recorded over $5 million in trading volume on its first day, making it the company’s most successful launch to date.
Emerging XRP Products Signal Easing Regulatory Climate Post-Court Ruling
The rapid growth of XRP-focused investment options signals a shift in the regulatory environment.
Last week, CME Group announced that it would soon introduce XRP futures on its derivatives exchange, joining Bitcoin, Ether, and Solana offerings. This initiative contributes to the increasing momentum surrounding XRP investment products.
The trend follows a pivotal legal victory for Ripple Labs in its prolonged court battle with the SEC, where Ripple secured a decisive win in March. This outcome has alleviated significant regulatory barriers to XRP’s usage and listing in financial markets.
There has been considerable demand for a spot XRP ETF, which would directly track the token’s price rather than operating through futures contracts. However, spot cryptocurrency ETFs have historically encountered tougher scrutiny from regulators. Recent approvals of spot Bitcoin ETFs have sparked optimism that other cryptocurrencies may soon follow suit.
At present, ProShares’ futures-based offerings present investors with an alternative means to engage in XRP price movements. Market reactions in the coming weeks will be closely monitored, particularly as the SEC approaches its next major decision regarding Grayscale’s spot XRP proposal.
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