SEC XRP Approval: ProShares to Launch Futures ETFs April 30

SEC Approves XRP Futures ETFs for ProShares: Spot ETF Still Pending

In a significant development for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has officially approved ProShares Trust to list several XRP futures exchange-traded funds (ETFs). These ETFs are set to begin trading on April 30, 2025, marking a major milestone for the industry. However, despite this approval, the SEC has not yet granted approval for a spot XRP ETF, leaving uncertainty around the future of directly trading Ripple's cryptocurrency through an ETF.

ProShares' New Offerings

ProShares, a well-known player in the ETF market with a range of Bitcoin ETFs already in circulation, is now venturing into the world of Ripple’s XRP with three new futures-based ETFs. These products will allow investors to speculate on XRP’s price movements without directly purchasing the cryptocurrency. The new XRP-related ETFs include:

1. ProShares Ultra XRP ETF (2x leverage): This ETF aims to provide double the return of the daily price movement of XRP, allowing investors to leverage their positions for potentially higher gains (or losses).

2. ProShares Short XRP ETF (-1x inverse leverage): This inverse leveraged ETF will seek to deliver the inverse performance of XRP’s daily price, allowing investors to profit from a decline in the price of XRP.

3. ProShares UltraShort XRP ETF (-2x inverse leverage): Similar to the short ETF, this product offers double the inverse leverage, providing more significant gains (or losses) if XRP declines in value.

These leveraged and inverse products are structured to track the price of XRP through a specially designed index, known as the Ripple Index. By offering a variety of ETFs with different risk profiles, ProShares is catering to a broad range of investors, from those seeking to benefit from XRP’s price appreciation to those betting on a decline.

Background and Timeline

ProShares first filed its request to launch these XRP futures ETFs on January 17, 2025. The decision came shortly after Donald Trump, a known supporter of cryptocurrency, was elected President of the United States. The SEC’s approval process has been ongoing, with the regulator thoroughly evaluating the proposed ETFs before giving the green light.

It’s important to note that ProShares has also applied for approval to launch a spot XRP ETF, which would directly track the real-time market price of XRP. Unlike futures-based ETFs, which are based on contracts that speculate on future price movements, spot ETFs would offer investors direct exposure to the cryptocurrency’s current price. However, the SEC has yet to approve spot XRP ETFs, which has led to frustration among crypto enthusiasts and investors who have been eagerly awaiting this development.

ProShares is Not Alone in the XRP ETF Market

While ProShares is now the first to receive approval for XRP futures ETFs in the United States, it is not the only company to have launched a similar product. Earlier in April 2025, Teucrium launched an XRP futures ETF on the New York Stock Exchange. Teucrium’s move signals that other firms are also keen on offering crypto-related ETFs to investors, providing more options in the market.

Internationally, the approval process has already taken a different trajectory. In Brazil, the cryptocurrency investment firm Hashdex made waves by launching the world’s first spot XRP ETF. This development highlights the global race to approve crypto-based financial products, with countries outside the U.S. taking more progressive steps in embracing cryptocurrency as part of the financial mainstream. This disparity in regulatory approval between the U.S. and other nations underscores the ongoing debates around the regulatory landscape for cryptocurrencies and their associated financial products.

CME Group to Introduce Ripple Futures Contracts

In another sign of growing interest in XRP, the CME Group, one of the largest derivatives exchanges in the world, has announced plans to launch Ripple futures contracts on May 19, 2025. The introduction of Ripple futures on the CME Group’s platform will offer institutional investors another tool for trading XRP, expanding the available options beyond just the traditional cryptocurrency exchanges.

The futures contracts will allow traders to speculate on the price of XRP without needing to own or manage the underlying cryptocurrency. This move by the CME Group is expected to further validate XRP as a legitimate asset class and attract more institutional interest in the cryptocurrency market. The growing demand for crypto options, particularly beyond Bitcoin and Ethereum, has led to the CME’s decision to broaden its offerings, addressing the diverse interests of crypto investors.

Impact on XRP Prices

The announcement of the approval for ProShares’ XRP futures ETFs has already had a notable impact on XRP’s price. Following the news, the price of XRP surged by 4.67% within just one day, reaching $2.26, according to CoinMarketCap. This uptick in price is a direct result of the increased investor optimism surrounding the approval of the ETFs. As more investors gain access to XRP through regulated financial products, it is expected that the demand for the cryptocurrency will continue to rise, potentially driving its price even higher.

However, while futures ETFs offer a new avenue for speculation, they do not directly address the desire for more accessible and straightforward crypto products. Many investors are still hoping for the SEC to approve a spot XRP ETF, which would offer more direct exposure to the cryptocurrency’s performance. A spot ETF would also provide a more traditional method of investing in XRP, making it easier for retail investors to gain exposure to the asset without the complexity of futures contracts.

Why This Matters for the Cryptocurrency Market

The approval of ProShares’ XRP futures ETFs is a significant step forward for the broader cryptocurrency sector. Futures-based ETFs provide a way for traders and investors to capitalize on the price fluctuations of XRP without needing to hold the token directly. This makes crypto investing more accessible to institutional investors who may be wary of the risks associated with directly owning digital assets, such as hacking, loss of private keys, and the volatility of the market.

Futures ETFs also allow investors to use leverage, which can amplify their returns (or losses), and offer opportunities for short selling, enabling them to profit from declining prices. The introduction of these products adds diversity to the cryptocurrency investment landscape, providing a wider range of options for both individual and institutional investors.

Source: CoinMarketCap

One of the key advantages of futures ETFs is that they provide a more regulated and secure way to gain exposure to volatile assets like cryptocurrencies. With the increased focus on regulatory oversight in the crypto space, these products are seen as a safer way to trade digital assets, ensuring that investors are protected from some of the risks associated with holding cryptocurrencies directly.

Institutional Interest in XRP and Other Altcoins

The introduction of XRP futures ETFs is expected to draw more institutional interest to the cryptocurrency market. Analysts believe that the growing availability of ETF products for altcoins such as XRP and Solana will help bring in larger institutional investors who have been hesitant to enter the space due to the perceived risks of directly holding cryptocurrencies. As more institutional capital flows into the market, the overall legitimacy of digital assets will increase, further supporting the adoption of cryptocurrencies in mainstream finance.

With increased institutional participation, the cryptocurrency market will likely see greater stability and liquidity, benefiting both retail and institutional investors. The growth of futures-based ETFs for popular altcoins also opens the door for other financial institutions to introduce similar products, expanding the market for crypto-based financial instruments.

Conclusion: A Step Toward the Mainstream Adoption of Crypto

The approval of ProShares’ XRP futures ETFs marks a significant milestone for the cryptocurrency market, providing a regulated and secure way for investors to speculate on XRP’s price without directly holding the token. While the SEC has yet to approve a spot XRP ETF, the growing interest in futures-based products signals that the cryptocurrency sector is moving toward greater mainstream acceptance.

As more players enter the market and the regulatory landscape continues to evolve, the cryptocurrency market will likely see increased institutional participation and greater investor confidence. The introduction of XRP futures ETFs is just the beginning of what promises to be an exciting future for the digital asset space.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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