ProShares XRP Futures ETFs Set for April 30 Debut, SEC Approves

The U.S. Securities and Exchange Commission (SEC) has given the green light to ProShares Trust, a major financial services firm, to launch three exchange-traded funds (ETFs) based on XRP futures. This approval marks a significant milestone for XRP investors, offering a new way to gain exposure to the cryptocurrency’s price movements without directly owning the asset.

A recent filing reveals that the Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF are set to launch on April 30. These funds will become the second, third, and fourth XRP-focused ETFs to debut in the United States.

It’s essential to understand that a futures-based ETF offers exposure to the price fluctuations of XRP futures contracts. Essentially, ProShares’ ETFs will track XRP’s price using the XRP Index. Unlike a spot ETF, which involves purchasing actual XRP tokens, a futures ETF allows investors to speculate on XRP’s price movements without owning the cryptocurrency itself.

The approval of the XRP futures ETFs resulted in a positive shift for XRP’s price, which saw an increase of 5.09% in the past 24 hours, reaching $2.28 at the time of writing, according to CoinMarketCap data.

ProShares submitted a separate application to the SEC for approval to launch spot XRP ETFs, but the decision on this request remains pending. This development is closely watched as it could pave the way for broader institutional involvement in XRP trading.

XRP Futures ETFs Approval Signals New Era for Ripple

The SEC’s approval of XRP futures ETFs marks a significant victory for Ripple Labs Inc., the company behind XRP, following a prolonged and contentious relationship with the agency. This shift in the SEC’s stance comes after Paul Atkins assumed the role of SEC chairman, signaling a change in the regulatory approach toward the cryptocurrency industry.

In March, Ripple and the SEC reached a resolution, ending their lengthy legal dispute. The SEC decided to drop its appeal in the ongoing case against Ripple, marking a significant shift in the legal battle.

The dispute originated in December 2020 when the SEC filed charges against Ripple, alleging that the company raised $1.3 billion through unregistered sales of its digital asset, XRP. In late March, Ripple reached a settlement with the SEC, agreeing to pay a $50 million fine and withdraw its cross-appeal. 

The approval of the XRP futures ETFs, coupled with the resolution of Ripple’s legal battle with the SEC, signals a pivotal moment for both the company and the broader cryptocurrency market.

As institutional investors gain greater access to XRP-related financial products, the market’s regulatory landscape continues to evolve. With more clarity on regulatory matters, the future of digital assets like XRP looks poised for further innovation, potentially opening new doors for crypto integration into traditional financial systems.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.