The U.S. Securities and Exchange Commission (SEC) has approved the first-ever XRP futures ETF, marking a significant step for the cryptocurrency on Wall Street. The ETF, launched by ProShares and set to go live on April 30th, 2025, will allow institutional investors to gain exposure to XRP in a regulated manner.
Despite rumors circulating online, the ETF will not be tracking the spot price of XRP. Instead, it will follow the futures contracts for XRP, which are traded on a major futures exchange and provide leveraged exposure to the cryptocurrency's price movements.
This approval comes just a few years after Ripple, the company behind XRP, was engaged in a legal battle with the SEC, which also saw the SEC approve the first Bitcoin futures ETF back in 2021. Now, XRP is joining Bitcoin and Ethereum, both of which already have both futures and spot ETFs.
While some investors initially questioned why futures ETFs were being approved before a spot XRP ETF, futures ETFs are often the first stage in a phased approach. This was the path for Bitcoin and Ethereum, and experts anticipate a spot XRP ETF to be approved later. Futures trading enables large institutional investors to take positions on XRP regardless of whether the market rises or falls—a common and healthy aspect of mature financial markets.
The approval has been described by experts as "huge" and a "game changer," highlighting that this move provides major players with a way to trade XRP in a legal and secure manner.
Moreover, in Brazil, the XRP H11 ETF has just been launched on the B3, the country’s main stock exchange, making it the first ETF in the world focused on XRP. This marks a turning point for the cryptocurrency, which was previously lagging behind Bitcoin and Ethereum in terms of institutional investment products.
With the new ETF, investors in Brazil and other countries where the product is available will be able to invest in XRP through a regulated and accessible vehicle. This is especially relevant considering that in the U.S., only accredited investors will be able to participate in the futures ETF.
Just a few years ago, XRP was subject to heavy legal scrutiny from U.S. regulators, but now it's being listed on international exchanges, with regulated investment products opening the door for more widespread adoption.
From being targeted by regulators to becoming a favorite of institutional investors, it seems that XRP is finally turning the page.
