Here’s the Launch Date for ProShares’ Three XRP ETFs

The U.S. Securities and Exchange Commission (SEC) has granted approval for ProShares to launch three XRP exchange-traded funds (ETFs), with plans for a public offering scheduled for April 30, 2025.

These ETFs will differ from a traditional spot ETF, as they will utilize derivatives to provide market exposure to XRP rather than holding the cryptocurrency directly, a detail that has garnered scrutiny from market analysts.

“This is NOT a spot XRP ETF,” remarked ETF specialist Nate Geraci on social media. “Instead, it encompasses a series of leveraged and inverse ETFs that gain XRP exposure through derivatives.”

Still No Spot XRP ETF

The portfolio includes the Ultra XRP ETF, which offers twice the leverage on daily returns of XRP futures, a Short XRP ETF designed for inverse exposure to capitalize on declines in XRP’s value, and the Ultra Short XRP ETF, providing nearly double the inverse (-2x) performance for the cryptocurrency daily.

The SEC’s choice to allow leveraged products prior to a spot ETF is remarkable, as most cryptocurrency ETFs, such as those for Bitcoin and Ethereum, took the reverse route. “Why are these being approved before the spot?” questioned an intrigued Geraci.

Earlier this month, the commission sanctioned its first leveraged XRP product: Teucrium’s 2x Long Daily XRP ETF (XXRP), listed on NYSE Arca. Some analysts believe this trend—first with Teucrium’s XXRP and now ProShares’ offering—might indicate the regulator’s growing comfort with derivatives-based exposure over direct ownership of digital assets.

“It may connect to regulatory comfort levels regarding derivatives versus direct asset holdings,” commented a user on social media, in response to Geraci’s inquiry. “Or possibly they are gauging the demand for leveraged products prior to considering a spot ETF.”

The approval follows closely after the SEC’s recent settlement with Ripple Labs, the organization overseeing the token. This long-running case concluded with a $50 million penalty, significantly lighter than the SEC’s initial expectations, effectively eliminating a significant regulatory barrier for the cryptocurrency.

Historic Milestone

ProShares, which manages assets exceeding $60 billion, is well-versed in offering crypto-related financial products, having made headlines in 2021 with the introduction of the first Bitcoin futures ETF (BITO). Its foray into XRP lends substantial influence and credibility to the sector.

Arthur, an XRP enthusiast on social media, referred to this development as a “historic milestone” for XRP’s acceptance in conventional finance, paving the way for enhanced accessibility for banks, institutional players, and individual investors alike.

“XRP is moving into the major league,” he asserted, highlighting the advantages the ETF could bring, including regulatory approval and the potential for significant capital influx.

In market movements, XRP saw a 4.6% increase within a 24-hour period, currently trading at approximately $2.28, having fluctuated between $2.17 and $2.29. Evaluating weekly performance, XRP experienced a rise of 7.4%, slightly lagging behind the broader crypto market’s 8.2% uptick during the same timeframe.

On top of that, XRP recorded a 5% growth over the previous month, as part of a wider trend that has resulted in a remarkable surge of over 335% over the past year.