EddieJayonCrypto
28 Apr 25
The U.S. SEC has approved ProShares Trust to launch three XRP futures-based ETFs on April 30, including Ultra XRP (2x leverage), Short XRP (-1x leverage), and Ultra Short XRP (-2x leverage). These ETFs will track XRP futures prices, allowing investors exposure without holding the token itself. This ...
The U.S. Securities and Exchange Commission (SEC) has given the green light for ProShares Trust to launch three XRP futures-based ETFs on April 30. These include Ultra XRP with 2x leverage, Short XRP with -1x leverage, and Ultra Short XRP with -2x leverage. Unlike spot ETFs that require holding the token, these futures ETFs track XRP futures contracts, allowing investors to gain regulated exposure to XRP price movements without directly holding XRP itself.The approval sparked a 3.5% price surge in XRP to $2.27, bucking the trend among most top cryptocurrencies, which experienced declines. XRP's market capitalization now exceeds $312 billion, underscoring renewed investor enthusiasm fueled by this regulatory milestone.This development signals a significant thaw in the long-fraught relationship between Ripple and the SEC. After years of litigation triggered by the SEC's 2020 lawsuit accusing Ripple of unregistered securities sales involving XRP, the company achieved a partial legal victory in 2023 when a judge ruled that XRP trades on secondary markets are not securities. While the SEC initially appealed this ruling, it recently agreed to drop the appeal pending Commission approval.Ripple CEO Brad Garlinghouse hailed the SEC’s decision to halt the appeal as a “historic victory,” emphasizing the potential end of a landmark case that could set critical crypto regulation precedents. Furthermore, Ripple and the SEC have moved to pause ongoing legal proceedings to explore settlement discussions.Alongside the ProShares ETFs, the first XRP futures ETF by Teucrium debuted on April 8 to strong market reception, indicating growing institutional demand for regulated XRP exposure. Meanwhile, the first spot XRP ETF has launched in Brazil, as ProShares’ U.S. spot ETF is still awaiting SEC approval.The approval of these futures ETFs not only marks a new chapter for XRP but could also reshape regulatory frameworks for how cryptocurrencies are classified and traded within the U.S. financial markets. As XRP breaks away from the past conflicts and gains regulatory acceptance, it invites investors to reconsider XRP’s role in diversified crypto portfolios amid evolving market dynamics.