XRP ETFs Are Coming: What ProShares’ SEC Approval Means for Crypto Investors
The U.S. Securities and Exchange Commission (SEC) has approved the public launch of ProShares Trust’s futures XRP ETFs (exchange-traded funds) on April 27, 2025, with a public launch set for April 30, 2025.
The approval detailed in a Form 485BXT filing clears the way for ProShares’ UltraShort XRP ETF, Ultra XRP ETF, and Short XRP ETF, which were first filed on Jan. 17, 2025.
These ETFs are futures-based, tracking XRP futures contracts and swap agreements rather than holding the Ripple-linked cryptocurrency directly, which is in line with the SEC’s cautious approach to crypto products.
Also read: How to Buy XRP Safely
Proshares futures XRP ETFs filing (Source: SEC)
Why Now? Crypto-Friendly Policies Pave Way for XRP ETFs
The approval came at the time of a crypto-friendly regulatory environment under the Trump administration, following Paul Atkins’ appointment as SEC Chair, per Ecoinimist.
Adding to market confidence is a joint motion filed on April 10, 2025, to suspend the SEC’s appeal in its case against Ripple, though a final resolution remains pending. Nine asset managers, including Bitwise and Franklin Templeton, have submitted XRP ETF applications, a sign of strong institutional interest.
ProShares, which launched the first U.S. Bitcoin futures ETF (BITO) in 2021, is banking on its experience with these leveraged and inverse XRP products.
Futures, Not Spot: Inside ProShares’ XRP ETF Strategy
Unlike spot XRP ETFs, which would hold XRP directly, ProShares’ ETFs will track futures contracts and swaps, as stated in the SEC filing.
Also read: Is XRP a Good Investment? What To Know
The Ultra XRP ETF aims for 2x daily returns, while the UltraShort (-2x) and Short XRP ETFs offer products for bearish strategies, offering a suite of trading tools. This futures-based model reduces some regulatory concerns but introduces risks like futures roll costs, a factor investors must consider.
The XRP ETFs are expected to increase the crypto’s liquidity and price discovery, similar to the impact of Bitcoin ETFs.
Nate Geraci, President of the ETF Store, suggested to MITrade that spot XRP ETF approvals could follow, citing the asset’s growing market depth. However, the Jan. 17, 2025, filing warns of volatility risks, particularly for leveraged products.
Also read: Coinbase Unveils New Regulated XRP Futures On its Platform
Investors are advised to keep an eye on XRP’s price and trading volume as the April 30 launch approaches, following a 5.27% price rise to $2.27 and a market capitalization of over $133 billion, proof of increasing market anticipation for the product launch.
XRP price chart (Source: CoinMarketCap)
What’s Next for XRP? ETFs Set Stage for Bigger Moves
The listing of XRP ETFs will further the crypto’s entry into traditional finance, drawing interest from retail and institutional investors.
As the April 30 launch nears, traders expect increased volatility and trading activity. ProShares’ futures-based ETFs set the stage for further XRP integration, with the industry watching for potential spot ETF approvals.
Investors are advised to monitor price trends and regulatory updates in this fast-growing market.
