#XRPETFs

#XRPETFs

On the evening of April 27, news broke that the U.S. Securities and Exchange Commission (SEC) had approved three ProShares XRP ETFs. Markets reacted swiftly: XRP's price surged 4% on April 28 following the announcement. However, many traders mistakenly believed a spot XRP ETF had been approved.

In reality, the SEC approved futures-backed ETFs:

Ultra XRP ETF (2x long exposure)

Short XRP ETF (1x short exposure)

Ultra Short XRP ETF (2x short exposure)

These products are based on XRP futures contracts, not physical XRP holdings. Under the SEC's framework, futures ETFs face fewer regulatory hurdles — if the SEC does not challenge the filing within a specified window, the ETF becomes effective automatically.

Despite the initial confusion, XRP's strong price action highlights sustained market optimism, especially with a decision on Grayscale’s spot XRP ETF application expected by May 22. A futures ETF allows investors to gain exposure to XRP price movements without directly purchasing the token. The new ProShares ETFs will track XRP performance using the XRP Index.