28th April 2025 – (New York) The U.S. Securities and Exchange Commission (SEC) has approved the launch of three XRP futures-based exchange-traded funds (ETFs) by ProShares Trust, which are set to debut on 30th April, as indicated in an SEC filing. ProShares proposed these ETFs on 17th January, shortly before the inauguration of the crypto-friendly President Donald Trump.
The newly approved ETFs include the Ultra XRP ETF, which offers 2x leverage; the Short XRP ETF, providing inverse (-1x) leverage; and the Ultra Short XRP ETF, which offers inverse (-2x) leverage. These products will be the second, third, and fourth XRP-related ETFs introduced in the U.S., following the launch of Teucrium’s first XRP futures ETF on April 8, which received a strong market response.
It’s important to note that a futures-based ETF allows investors to gain exposure to price movements of XRP futures contracts without needing to hold the actual tokens. ProShares’ ETFs will track XRP prices via the XRP Index, differing from a spot ETF that would require the purchase of XRP tokens. ProShares has a separate application for spot XRP ETFs that is still pending with the SEC. Meanwhile, Brazil has already launched its first spot XRP ETF by Hashdex.
The introduction of these XRP futures ETFs represents a significant advancement, providing a regulated avenue for investors to capitalise on XRP’s price movements and potentially attracting institutional interest. Following the approval of the futures ETFs, XRP’s price rose by 3.5% over the past 24 hours to reach $2.27, with a market capitalisation exceeding $312 billion. Notably, while XRP saw gains, most other major cryptocurrencies experienced declines, highlighting a unique positive trend for XRP.
The approval of XRP-related ETFs marks a substantial win for Ripple, the company behind XRP, which has faced ongoing legal challenges with the SEC. The dynamics have shifted since Trump’s election and the appointment of Paul Atkins as SEC chairman, both of whom have adopted a more crypto-friendly stance. Atkins recently remarked that the current regulatory framework requires significant attention, indicating that crypto innovation has been stifled under previous SEC leadership.
In 2020, the SEC filed a lawsuit against Ripple, alleging it violated securities laws by selling XRP as an unregistered security. A partial victory for Ripple occurred in July 2023 when a judge ruled that XRP does not qualify as a security when sold on secondary markets. However, institutional sales of XRP were classified as unregistered securities, resulting in a $125 million fine, which the SEC has appealed.
On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had agreed to drop the appeal, pending a Commission vote and approval, declaring the case a “historic victory.” On 10th April, Ripple and the SEC jointly filed a motion to pause proceedings to discuss settlement terms. The resolution of the Ripple SEC lawsuit is expected to have broader implications for the cryptocurrency market, potentially establishing that tokens traded on exchanges are not necessarily classified as securities.
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