In a significant move for the crypto industry, the SEC has approved the launch of ProShares Trust’s XRP-focused ETFs, marking a new chapter for regulated crypto investments in the U.S.
SEC Approval Sets Date for XRP ETFs Launch
The U.S. Securities and Exchange Commission (SEC) has officially given the green light for ProShares Trust to launch a set of XRP-focused exchange-traded funds (ETFs) on April 30, 2025. This marks a monumental step for the digital asset sector, as it brings the popular cryptocurrency closer to mainstream financial markets.
ProShares Trust has filed a Form N-1A, specifying the launch date and details for multiple ETFs related to XRP, including the ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, and ProShares Short XRP ETF. These ETFs will offer investors leveraged and inverse exposure to the price movements of XRP, providing new options to trade and invest in the cryptocurrency through regulated vehicles.
A Milestone for Crypto Investment Products
This approval follows months of anticipation surrounding the regulatory approval of cryptocurrency-based ETFs in the U.S. While XRP enthusiasts have long awaited a spot ETF for the coin, the ProShares XRP ETFs represent a significant milestone in regulated crypto products, though not as a direct spot product.
ProShares Trust is taking a strategic leap into the digital assets sector, expanding its portfolio with investment products linked to cryptocurrencies. These funds are structured under mutual fund frameworks, ensuring they comply with the Securities Act and the Investment Company Act, making them eligible for U.S. investors.
The launch of these ETFs is a critical development for investors seeking regulated exposure to XRP in the U.S. markets. These products offer more flexible trading options, such as leveraged and inverse positions, allowing traders to capitalize on price fluctuations of XRP in a controlled manner.
-
Effective Date: April 30, 2025
-
Funds Offered: ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, ProShares Short XRP ETF
-
Registration: Filed under mutual fund framework, compliant with the Securities Act and the Investment Company Act
Despite this launch, it’s important to note that these ETFs are not classified as spot products, which means they won’t provide direct exposure to XRP’s spot price. Instead, they are designed to give investors exposure through the fund’s performance, which tracks price movements in a more indirect manner.
This approval represents a strategic move by ProShares Trust to tap into the growing demand for cryptocurrency-based financial products. It further aligns with the firm’s goal of bringing crypto-based investment options to mainstream investors in the U.S. Through these ETFs, investors can now gain regulated access to the popular cryptocurrency in a familiar, traditional investment format.
While this approval is a win for the crypto sector, it also signals the SEC’s ongoing efforts to regulate and approve cryptocurrency-related investment products. However, the road ahead for more direct, spot-based ETFs for XRP and other digital currencies remains uncertain.
Share This
