Key Takeaways
- ProShares plans to launch three XRP futures-based ETFs, including leveraged and inverse options.
- The SEC has not raised objections to these funds, allowing them to proceed to market.
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ProShares, the top issuer of leveraged and inverse exchange-traded funds, may debut three futures ETFs tied to XRP, Ripple’s native crypto asset, as soon as April 30, according to a post-effective amended prospectus filed on April 15.
The proposed products include the Short XRP ETF, offering investors the opportunity to profit from declines in the price of XRP; the Ultra XRP ETF, delivering approximately twice the daily return of XRP’s price movements; and the UltraShort XRP ETF, aimed at providing approximately twice the inverse (-2x) of XRP’s daily performance.
ProShares, which initially filed for its XRP futures ETFs in January, stated in the April prospectus that its filing is expected to become effective on Wednesday, April 30.
The filing was made under a procedural mechanism that permits the products to launch without requiring further substantive review or explicit reapproval from the SEC, provided no objections are raised before the effective date.
However, while the amendment would allow the funds to become effective on that date, actual trading may not begin immediately, depending on exchange readiness and other operational factors.
Once the debut is confirmed, ProShares’ XRP futures ETFs will join Teucrium Investment Advisors, the first fund manager to launch a US-listed XRP ETF.
Teucrium’s fund, called the 2x Long Daily XRP ETF, aims to deliver returns that are double the daily return of XRP through swap agreements.
Teucrium’s launch came amid increasing investor demand for XRP following Donald Trump’s election victory, which directly contributed to a wave of regulatory developments favorable to the crypto industry, including the legal outcome between Ripple Labs and the SEC.
Pending spot XRP ETF decision
The SEC has delayed its decision on multiple spot XRP ETF applications, including those from major firms like Grayscale, Bitwise, and WisdomTree.
However, the delay is viewed as a normal part of the agency’s review process for crypto spot ETFs — not limited to XRP-linked products. Other ETFs tied to altcoins such as Solana, Dogecoin, and Litecoin are also currently pending.
ETF experts remain optimistic that the SEC will greenlight spot crypto ETFs as soon as this year, with Litecoin ETFs possibly being the first to receive approval.
Analysts’ confidence in XRP ETF approval has also grown, particularly following Paul Atkins’ appointment as SEC Chairman.
Earlier this week, CME Group announced plans to launch XRP futures, signaling a move towards potential spot ETF approval after the legal battle between the SEC and Ripple Labs officially concludes.
XRP is trading around $2.27, up nearly 9% over the past week, per TradingView.
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