- ProShares to launch 2x leveraged and short XRP ETFs on April 30.
- SEC’s approval excludes spot XRP ETFs, still under review.
- Teucrium launched the first XRP futures ETF earlier this month.
ProShares will debut three XRP futures-based exchange-traded funds(ETFs) on April 30, 2025. These ETFs will track the price of XRP and provide investors with leveraged and inverse exposure to XRP. The three ProShares ETF products comprise the Ultra XRP ETF with 2x leverage, the Short XRP ETF and the Ultra Short XRP ETF with -2x leverage.
The approval of these exchange-traded funds(ETFs) marks an important step in the U.S. markets. ProShares submitted its applications in January and received implicit approval. The ETFs will launch as scheduled because the SEC has not submitted any objections.
ProShares is the second asset manager to launch futures-based ETFs which track XRP in the U.S market. ProShares launches several leveraged products to meet the increased demand for digital asset-based investment products. The launch comes after Vermont-based Teucrium Investment Advisors LLC debuted futures-based XRP ETF earlier this month.
XRP Futures ETFs Outpace Spot XRP ETFs in Approval
Although ProShares has received approval for its futures-based products, its spot XRP ETF is still under review. ProShares submitted an application to launch a spot XRP ETF but this product has not yet been approved. Furthermore, the SEC has not approved spot XRP ETF applications filed by ProShares, Grayscale, 21Shares and Bitwise.
The ProShares Ultra XRP ETF enables investors to achieve 2x leverage to the XRP price movement. However, the Short and Ultra Short XRP ETFs are inverse products that enable investors to profit when prices decrease. These leveraged products target active trade traders and offer them high-risk high-reward trading opportunities.
The SEC has demonstrated a lenient approval process of futures-based ETFs compared to spot products. The spots ETFs must adhere to a formal SEC approval process unlike the futures ETFs. The approval of ProShares’ futures ETFs demonstrates the SEC’s cautious approach to cryptocurrency investment products.
ProShares’ Crypto Product Lineup
The ProShares’s XRP futures ETFs diversifies the cryptocurrency-based financial products available in U.S. markets. ProShares, a major player in the crypto ETF market, seeks to expand its XRP product lineup as well as broaden market participation.
ProShares’s latest move matches its approach for crypto-based investment products diversification. The company continues to develop products that provide investors with increased access to digital assets. ProShares expects increased demand for regulated investment options due to the digital asset market growth.