Two new exchange-traded funds (ETFs) focused on Ripple’s XRP are set to debut on Thursday, offering leveraged and inverse exposure to the cryptocurrency.
The funds, launched by ProShares, come shortly after the launch of Teucrium Investment Advisors LLC’s (NYSE:TEUM) XRP ETF earlier in August. Teucrium’s fund is the first U.S.-listed ETF to provide direct exposure to XRP, offering a 1.5x leveraged strategy without directly holding any tokens.
Now, ProShares is unveiling its own take on XRP ETFs with three new additions to its lineup. The first fund, to be listed on the New York Stock Exchange (NYSE) under the ticker "XRPL," will provide leveraged exposure to XRP.
This follows the recent approval of the CME Group to list XRP futures on its U.S. derivatives exchange. The futures, available in two contract sizes with daily cash settlement, will be added to the CME’s existing offerings of Bitcoin, Ethereum, and Solana futures.
Earlier this year, ProShares proposed the ProShares Triple Cryptocurrency Index Futures ETF, applying for approval from the Securities and Exchange Commission (SEC). The fund aims to provide 3x leveraged exposure to a cryptocurrency market structure index futures contract, offering a unique and highly leveraged investment opportunity in the crypto space.
The SEC’s review period for ProShares’ applications did not include any objections, leading to the approval of the leveraged and inverse XRP futures ETFs. However, the SEC is yet to approve any spot XRP ETFs, despite applications from several asset managers.
ProShares’ application for a spot fund is still pending approval, alongside similar proposals from Grayscale, 21Shares, and Bitwise.
The new ProShares ETFs are part of the firm’s broader strategy to introduce cryptocurrency investment products within the U.S. regulated financial landscape.
As the cryptocurrency market continues to evolve, institutions are playing a greater role, leading to the creation of new financial products and the expansion of existing ones to cater to this demand.
