ProShares Launches XRP Futures ETFs, Spot ETF Approvals May Follow

In a major development for the cryptocurrency sector, the United States Securities and Exchange Commission (US SEC) has approved ProShares' launch of XRP futures

The U.S. Securities and Exchange Commission has approved ProShares to launch XRP futures exchange-traded funds, with trading set to begin on April 30, 2025.

This is a major development for the cryptocurrency sector, and it could herald a new era for XRP investors and broader shifts in U.S. regulatory thinking on digital assets.

What Is XRP?

XRP is a digital token created by Ripple Labs, a company focused on revolutionizing cross-border payments. Ripple’s network aims to connect international banks, facilitating instant money transfers without the typical SWIFT system inefficiencies.

XRP serves as a bridge currency in this network, enabling rapid, low-cost transactions. A single cross-border transfer using XRP costs just a fraction of a cent, showcasing its utility in real-world financial ecosystems.

Ripple’s lengthy legal battle with the SEC, initiated in 2020, has been a significant factor influencing XRP’s price. However, a more crypto-friendly political climate under President Donald Trump and recent signs of a potential settlement have drastically improved sentiment toward XRP.

ProShares’ XRP Futures ETFs

Earlier this year, ProShares, already known for its Bitcoin Futures ETF (BITO), proposed three ETFs linked to XRP:

1. Ultra XRP ETF (2x leveraged)

2. Short XRP ETF (inverse -1x leveraged)

3. UltraShort XRP ETF (inverse -2x leveraged)

These futures ETFs will track XRP prices based on the XRP Index, allowing investors to speculate on the token’s price movements without direct ownership. This contrasts with spot ETFs, which require the fund to hold the underlying asset.

The ETFs will invest in a combination of XRP futures contracts, swaps, and cash balances in money market instruments, including U.S. Treasuries. This provides a regulated avenue for investors to participate in XRP's price trends while mitigating direct exposure risks.

Why This Approval Matters

The approval of ProShares’ XRP futures ETFs is pivotal for several reasons:

1. It signifies the increasing acceptance of XRP as a recognized asset class within regulated U.S. financial markets.

2. This move could unlock substantial institutional capital interest in XRP, similar to the patterns seen after the introduction of Bitcoin and Ethereum ETFs.

3. As a result of the announcement, XRP prices have reacted positively, surging over 6% to $2.28 in early trading on April 28, with daily trading volume soaring by more than 53%.

In contrast, Bitcoin and other major cryptocurrencies experienced price declines during the same period, highlighting XRP’s relative strength.

Ripple’s Legal Saga and Future Prospects

These developments unfold against the backdrop of Ripple’s ongoing legal battle with the SEC. However, recent reports suggest that the two parties have reached an agreement to settle the case.

As part of the settlement, Ripple will pay $50 million of a previously escrowed $125 million penalty, and the SEC will withdraw its appeal regarding the “Programmatic Sales of XRP” ruling. Additionally, Judge Analisa Torres may lift the injunction on selling XRP to institutional investors.

If finalized, this settlement could remove a major impediment to XRP’s price recovery and further boost its market credibility.

Implications for XRP Spot ETFs

ProShares has also filed for a spot XRP ETF, which is still pending SEC approval. A spot ETF would involve holding actual XRP tokens rather than futures contracts, offering a more direct exposure option to investors.

Considering that Brazil recently saw the launch of the world’s first spot XRP ETF by Hashdex, and once one major market opens the door, others tend to follow, the approval of ProShares’ futures ETFs could be a springboard for rapid development in the ETF market.

Betting platform Polymarket currently places the odds of a U.S. XRP-spot ETF approval by December 2025 at 78%, up from 68% earlier this month.

Meanwhile, Bloomberg Intelligence ETF analyst James Seyffart remains highly confident in an eventual approval, predicting final decisions by October 2025.

XRP Price Outlook

Following the SEC’s announcement and broader market enthusiasm, here's a snapshot of XRP's price action:

* Current Price: $2.2335

* Market Cap: $136 billion

* 52-Week Range: $0.39 to $3.38

XRP is currently consolidating above key support levels around $2.10, with resistance anticipated at the $2.22 level. A decisive breakout above $2.40 could set the stage for a retest of previous highs at $3.3999 and eventually its all-time high of $3.5505.

However, downside risks remain, especially if the Ripple-SEC settlement faces delays or macroeconomic conditions worsen