ProShares Trust announced that it has received the green light from the U.S. Securities and Exchange Commission (SEC) to launch exchange-traded funds (ETFs) based on XRP futures contracts. These funds are scheduled to officially take effect on April 30, 2025, according to a new update in Form N-1A. The anticipated launches include:
ProShares Ultra XRP ETF
ProShares UltraShort XRP ETF
ProShares Short XRP ETF
It is important to note that these funds rely on XRP futures contracts and do not hold the digital asset directly, meaning they may be more susceptible to volatility compared to funds based on spot assets.
According to the filing, the update aims only to specify the new effective date and does not indicate immediate approval from the SEC, as these funds become effective unless the commission raises objections during the allowed period after submission. The immediate effectiveness was not chosen at the time of application; April 30, 2025, was set as the actual date.
This development represents an additional step towards expanding investment options related to digital assets, despite ongoing regulatory challenges. Are we soon to see more cryptocurrency funds?