The ETFs will track XRP futures prices, giving investors new ways to trade the token’s daily moves
XRP is set to enter a new chapter in U.S. financial markets after the Securities and Exchange Commission (SEC) approved three futures-based leveraged ETFs tied to the cryptocurrency.
ProShares, one of the largest U.S. ETF issuers, will debut the new products on April 30, offering crypto traders regulated exposure to XRP price movements.
The approval follows the conclusion of Ripple’s long-running legal battle with the SEC, which officially ended in March.
The case, initially filed in December 2020, centered around allegations that Ripple Labs conducted an unregistered securities offering through the sale of XRP tokens.
A federal judge ultimately ruled that XRP sales on secondary markets did not constitute securities transactions, clearing a path for greater institutional adoption.
Details on the new XRP leveraged ETFs
The newly approved products from ProShares are structured to track XRP futures contracts. They will offer varying exposure levels to the token’s price movements:
- Ultra XRP ETF will provide 2x leveraged exposure, aiming to amplify gains when XRP prices rise.
- Short XRP ETF will deliver inverse exposure, allowing traders to profit from declines in XRP’s price.
- Ultra Short XRP ETF will offer -2x leveraged exposure, designed to maximize gains if XRP experiences significant price drops.
Each fund is intended for daily trading strategies rather than long-term holding, as leveraged products reset daily and can diverge from long-term price performance.
The availability of these ETFs will give sophisticated investors new tools to capitalize on XRP’s volatility within a regulated framework.
XRP futures success raises hopes for eventual spot ETF approval
While the SEC has approved XRP futures-based ETFs, it has not yet authorized any spot XRP products.
Several asset managers, including Grayscale, have filed applications to list a spot XRP ETF, with a critical deadline for Grayscale’s proposal approaching on May 22.
A future approval could mark an even greater step toward mainstream acceptance of cryptocurrency assets within regulated financial markets.
Earlier this month, Teucrium, a leading issuer specializing in futures-based commodity funds, launched a 2x leveraged XRP ETF, suggesting there is strong demand for futures-based XRP instruments.
The product recorded over $5 million in trading volume on its first day, marking the best debut in Teucrium’s history and highlighting growing investor appetite for XRP-related offerings.
Institutional interest continues to build beyond ETFs as well. CME Group, the largest U.S. derivatives exchange, plans to introduce XRP futures contracts in May, alongside existing products tied to Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
