The U.S. Securities and Exchange Commission (SEC) has approved several XRP-related futures exchange-traded funds (ETFs) from ProShares Trust, a landmark decision that could open up new avenues for institutional investment in the cryptocurrency.
However, despite rumors and anticipation, the SEC did not greenlight any spot XRP ETFs. Instead, the approved futures products, which are set to become effective starting April 30, 2025, will provide leveraged and inverse exposure to XRP’s futures prices.
The approved offerings include the ProShares UltraShort XRP ETF, the ProShares Ultra XRP ETF, and the ProShares Short XRP ETF. These ETFs are designed to provide investors with leveraged and inverse exposure to XRP’s futures prices, allowing for sophisticated trading strategies that aim to capitalize on both rising and falling markets. Specifically, the “Ultra” products offer leveraged exposure, while the “Short” products provide inverse exposure for those seeking to profit from declines in XRP futures prices.
The news was met with swift reactions in the market, with XRP’s price surging over 4% shortly after the announcement. The cryptocurrency quickly jumped from $2.18 to a high of $2.27. However, the initial rally proved short-lived. At the time of writing, XRP is trading at $2.234, with a market capitalization of $130.7 billion.
Over the last 24 hours, XRP’s price has fluctuated between a high of $2.25 and a low of $2.16, reflecting heightened volatility as traders digested the SEC’s decision.
Despite the recent excitement, XRP is still down approximately 41.85% from its all-time high of $3.84, a record it set more than seven years ago on January 4, 2018.
The SEC’s move to allow XRP futures ETFs, while holding back spot ETFs, is in line with a cautious regulatory approach already seen with Bitcoin and Ethereum in past years. It signals a significant — though partial — step forward in the broader acceptance of XRP within the traditional financial system.
As these products approach launch, investors and market watchers are keenly interested in how deep and broad the institutional participation will be, and how this might affect the overall liquidity landscape in the XRP market.
