The U.S. Securities and Exchange Commission (SEC) has approved three XRP (XRP) cryptocurrency exchange-traded funds (ETFs) to be issued by ProShares.
Privately held ProShares, which focuses exclusively on ETFs, says it plans to introduce three XRP-tracked products in the coming week after receiving regulatory approval. The company will launch an Ultra XRP ETF (2x leverage), a Short XRP ETF, and an Ultra Short XRP ETF (-2x leverage).
However, the SEC has yet to approve applications from ProShares, and others, to launch a spot XRP ETF. Fund manager Grayscale’s filing for a spot XRP ETF that would track the price movements of the cryptocurrency faces a May 22 deadline for the SEC to render a decision.
Growing Interest in XRP
Earlier in April, the CME Group added XRP futures to its largest derivatives exchange in the U.S. for launch in May of this year alongside Bitcoin (BTC) and Ethereum (ETH) products. Interest in ETFs that track XRP is growing after closely related company Ripple’s long-running court battle with the SEC ended in March.
The SEC had accused Ripple Labs of raising $1.3 billion through unregistered sales of its closely related XRP crypto token. Ripple Labs vigorously defended itself until the SEC ended its case a month ago. XRP is currently trading at $2.28 per digital token, having declined 2% this year.
Is XRP a Buy?
Most Wall Street firms don’t offer ratings or price targets on XRP, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of XRP has declined 27.10% in the last 12 weeks.
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