In a landmark move for the U.S. crypto investment landscape, ProShares has received regulatory clearance from the Securities and Exchange Commission (SEC) to introduce three XRP futures ETFs. Slated for launch on April 30, 2025, these ETFs will provide investors with new, leveraged ways to gain exposure to XRP, the digital asset at the center of Ripple’s payments network.
The upcoming products—Ultra XRP ETF (2x leverage), Short XRP ETF (-1x inverse leverage), and Ultra Short XRP ETF (-2x inverse leverage)—represent a significant expansion of crypto-linked investment options in the United States. These funds will primarily invest in XRP futures contracts and money market instruments, aiming to closely track the XRP Index’s daily movements.
SEC approves XRP Futures ETFs
The three ProShares ETFs are designed to cater to varying investor strategies:
Ultra XRP ETF seeks to deliver twice the daily return of the XRP Index, amplifying potential gains for bullish investors.
Short XRP ETF targets the inverse (-1x) of the daily performance of the XRP Index, allowing investors to profit when XRP prices decline.
Ultra Short XRP ETF aims for twice the inverse daily return (-2x) of the XRP Index, offering an aggressive strategy for those betting on significant XRP downturns.
Registration from the SEC
All three ETFs will invest in cash-settled XRP futures contracts traded on regulated U.S. exchanges, alongside high-quality money market instruments such as U.S. Treasury securities. Notably, these are not spot XRP products; instead, they are tied to futures, reflecting daily price movements rather than the underlying asset itself.
ProShares, known for pioneering the first Bitcoin futures ETF in the U.S., continues to leverage its experience to introduce innovative crypto investment vehicles while navigating regulatory complexities.
Regulatory Context: Ripple’s Victory and Evolving Market Dynamics
The SEC’s tacit approval of these ETFs comes shortly after a critical turning point in XRP’s regulatory journey. In March 2025, Ripple concluded a long-standing legal battle with the SEC, which began in late 2020. The resolution—largely seen as favorable to Ripple—clarified that secondary market sales of XRP do not constitute securities transactions, significantly easing regulatory uncertainty around the token.
This improved legal clarity has reignited institutional interest in XRP-related products. Following the lawsuit’s resolution, firms like ProShares, Grayscale, 21Shares, and Bitwise filed applications for spot XRP ETFs, signaling confidence that the U.S. regulatory environment is becoming more accommodating toward XRP.
However, while ProShares’ futures-based ETFs have now been approved, spot XRP ETFs remain in regulatory limbo. Grayscale’s application faces a final SEC decision deadline of May 22, 2025, which could set a precedent for other spot XRP products awaiting approval.
Market Reaction: XRP Price Surge and Trading Volumes Soar
Market performance of XRP after the news
The news of ProShares’ ETF approvals has had an immediate impact on XRP’s market performance. On April 28, 2025, XRP’s price surged by 6.35%, reaching $2.28—the highest level since early 2022. XRP’s market capitalization climbed to approximately $131.06 billion, securing its position as one of the largest cryptocurrencies by value.
Trading activity also spiked significantly, with 24-hour volume increasing by 53.58% to $3.92 billion. This surge reflects heightened investor enthusiasm, likely fueled by expectations of increased institutional participation and broader market access through regulated investment products.
While the approval covers futures ETFs rather than spot products, many investors view this development as a stepping stone toward eventual spot ETF approvals, further validating XRP’s role in the mainstream financial ecosystem.
Comparison with Brazil’s Spot XRP ETF Landscape
While the U.S. is making strides in offering XRP futures ETFs, other countries have moved faster in approving spot XRP products. Brazil, for instance, has had a spot XRP ETF listed since 2023, providing investors direct exposure to the cryptocurrency without the complexities of futures contracts.
The Brazilian market’s earlier adoption of spot ETFs highlights the United States’ cautious regulatory stance. However, the launch of futures-based products in the U.S. may pave the way for spot XRP ETFs in the near future, aligning with broader global trends that increasingly recognize major cryptocurrencies as legitimate investment assets.
Unlike spot ETFs, futures ETFs often involve higher management fees and carry additional risks due to daily rebalancing and contango effects in the futures market. Nonetheless, they represent a critical milestone for crypto market maturation in heavily regulated markets like the U.S.
The Potential Impact of XRP Futures ETFs on Institutional Investment
The introduction of XRP futures ETFs by a major player like ProShares could significantly alter the investment landscape for digital assets in the U.S., especially among institutional investors.
Futures-based ETFs offer institutions a regulated, liquid, and relatively straightforward way to gain exposure to cryptocurrency markets without the operational complexities of directly holding digital assets. Custody issues, wallet security, and regulatory concerns are minimized, as investors only deal with traditional brokerage accounts and familiar investment vehicles.
Moreover, leveraged and inverse products like the Ultra XRP and Ultra Short XRP ETFs appeal to a range of trading strategies, including hedging and tactical asset allocation. These funds enable sophisticated investors to manage directional bets and volatility exposures with greater flexibility.
If these ETFs attract strong inflows, it would not only validate XRP’s investment thesis post-lawsuit but also further integrate cryptocurrencies into the traditional financial system, bridging the gap between legacy finance and emerging digital assets.
A New Chapter for XRP in U.S. Markets
ProShares’ forthcoming launch of three XRP futures ETFs marks a significant milestone in the maturation of cryptocurrency markets in the United States. The approvals, coming on the heels of Ripple’s legal victory over the SEC, signal a broader shift toward regulatory acceptance of XRP-related investment products.
While the wait for spot XRP ETFs continues, futures-based products provide both retail and institutional investors with new ways to participate in XRP’s potential growth. The positive market response underscores the strong appetite for diversified crypto exposure through regulated channels.
As the U.S. continues to cautiously open the doors to cryptocurrency innovation, ProShares’ move could be the beginning of broader opportunities for XRP investors—and perhaps a harbinger of further integration between digital assets and traditional finance.
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Jenifer
Jenifer is the lead author for the Feature and Guide sections on blog.mevx.io, bringing over 5 years of experience in cryptocurrency trading and decentralized finance (DeFi).
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