Three XRP futures ETFs will be launched by ProShares Trust, providing exposure to XRP’s price movements through an index.
The U.S. has approved ProShares Trust to launch three XRP futures-based exchange-traded funds (ETFs). Securities and Exchange Commission (SEC), according to an SEC filing. On January 17, just days before crypto-friendly President Donald Trump’s inauguration, ProShares proposed the following ETFs:
The U.S. will launch the second, third, and fourth XRP-related ETFs. Teucrium began trading the first XRP futures ETF at the New York Stock Exchange (NYSE) on April 8, receiving a ‘terrific response.’
Investors should note that a futures-based ETF provides exposure to XRP’s price movements through futures contracts. ProShares’ ETFs track the price of XRP using the XRP Index. Unlike a spot ETF, which requires purchasing actual XRP tokens, a futures XRP ETF allows investors to speculate on XRP’s price without holding the token itself.
ProShares’ separate request for spot XRP ETFs is still under review by the SEC. Meanwhile, as the U.S. continues to delay, the first spot XRP ETF by Hashdex was launched for trading in Brazil earlier this week.
The importance of the launch of these XRP futures ETFs is not diminished, however. A regulated avenue to benefit from XRP’s price movements will be provided by these products, potentially paving the way for increased institutional interest.
Effect on XRP Price
The futures-ETF approval boosted XRP’s price by 3.5% over the past 24 hours, pushing it to $2.27 at the time of writing, according to CryptoSlate data. Reports indicate that XRP’s market capitalization has surpassed $312 billion.
It is worth noting that the prices of all other major market cap tokens, except for Bitcoin (which recorded a 0.11% increase), have declined over the past 24 hours. This suggests that the movement of XRP’s price has gone against the broader market, marking the largest price surge among the top 10 tokens.
Ripple’s Strained Relationship with the SEC Shows Signs of Improvement
Ripple, the company behind XRP, views the launch of XRP-related ETFs in the U.S. as a major victory. The company had battled the SEC in court for several years, but the situation changed after Trump took office and appointed Paul Atkins as SEC chairman.
Trump and Atkins have taken a significantly different approach from their predecessors, with Trump embracing a crypto-friendly stance for his second term and Atkins, a known crypto advocate and former SEC commissioner, reinforcing that direction. During a roundtable organized by the SEC’s Crypto Task Force on Friday.
The market itself indicates that the current framework urgently needs attention.
Atkins further stated that the SEC’s approach under former chair Gary Gensler had stifled crypto innovation over the past several years.
In 2020, the SEC sued Ripple, alleging that the company violated securities laws by selling XRP, which the agency considered an unregistered security.
Ripple secured a partial victory in July 2023 when the judge ruled that XRP does not qualify as a security when sold on secondary markets such as exchanges. However, the judge determined that institutional sales of XRP involved unregistered securities and imposed a $125 million fine. The SEC responded by filing an appeal.
On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had agreed to withdraw the appeal, pending a Commission vote and approval. Garlinghouse declared the case ‘over’ and described the moment as a ‘historic victory.’
On April 10, Ripple and the SEC jointly filed a motion to pause the lawsuit proceedings so they could negotiate settlement terms.
The Ripple-SEC lawsuit could reshape the broader crypto market, as its resolution may set a precedent showing that tokens traded on exchanges are not necessarily securities.
