The U.S. Securities and Exchange Commission (SEC) has approved the public launch of ProShares Trust’s XRP exchange-traded funds (ETFs), with trading set to commence on April 30, 2025. This move marks a significant milestone for both XRP and the broader digital asset market, offering investors regulated and diversified exposure to one of the world’s largest cryptocurrencies.

ProShares Innovative XRP ETFs

ProShares, a leading name in the ETF industry, is set to debut three distinct XRP futures-based ETFs:

1. Ultra XRP ETF: Provides 2x leveraged exposure to XRP price movements.

2. Short XRP ETF: Offers inverse (-1x) exposure, allowing investors to profit from declines in XRP’s price.

3. Ultra Short XRP ETF: Delivers -2x leverage, amplifying returns when XRP’s price falls.

These products are designed to track XRP’s price through futures contracts rather than direct ownership of the token, a structure that mirrors ProShares’ earlier success with Ethereum and Bitcoin futures ETFs. This approach aligns with the SEC’s continued preference for futures-based crypto funds over spot products, reflecting a cautious but evolving regulatory stance.

Why This Approval Matters

The SEC’s green light for ProShares’ XRP ETFs is more than just another product launch, its a signal of growing institutional acceptance for digital assets. XRP, with a market capitalization of $127 billion and ranking as the fourth-largest cryptocurrency, has seen its price soar to $2.18, up 480% in the last month alone. This rally is driven by renewed regulatory optimism and Ripple’s recent legal victories, including the SEC dropping its long-standing lawsuit against the company.

Backdrop

The timing of this ETF launch is no coincidence. Ripple’s decisive legal win over the SEC in March 2025 removed a major cloud hanging over XRP, boosting investor confidence and clearing the path for new financial products. The appointment of Paul Atkins as SEC Chair, who has pledged to prioritize clear digital asset regulations, further signals a friendlier regulatory environment for crypto innovation. Additionally, the New York Department of Financial Services’ approval for Ripple to launch a stablecoin, and the upcoming launch of XRP futures on the CME Group in May, reinforce XRP’s growing legitimacy and liquidity in mainstream finance.

A Surge of Institutional Interest

ProShares is not alone in its pursuit of XRP ETFs. By April 2025, at least nine other firms-including heavyweights like Bitwise, 21Shares, and WisdomTree, had filed for similar products. Analysts predict that industry giants such as BlackRock may soon join the fray to avoid losing ground in the rapidly expanding crypto ETF market.

The first-mover advantage for ProShares is significant. Its ETFs will join Teucrium’s 2x Long Daily XRP ETF, which debuted earlier this month on the New York Stock Exchange and quickly became the firm’s most successful launch, racking up over $5 million in trading volume on its first day.

As trading begins on April 30, all eyes will be on how these innovative ETFs perform-and what they herald for the future of crypto investing in the United States. While the excitement is palpable, it’s important to note that these are futures-based ETFs. ProShares’ application for a spot XRP ETF-one that would require actually holding XRP tokens-is still pending with the SEC. Industry observers remain optimistic that spot crypto ETFs could be approved later this year, especially as regulatory clarity improves and institutional demand intensifies.