#XRPETFs #XRPETFs

On the evening of April 27, news spread that the U.S. Securities and Exchange Commission (SEC) had approved three ProShares XRP ETFs. Markets quickly reacted. XRP’s price jumped 4% on April 28 after news of the SEC approval, though many traders had mistakenly bet on a spot ETF, not approved.

The approved products are futures-backed ETFs: Ultra XRP ETF (2x long), Short XRP ETF (1x short), and Ultra Short XRP ETF (2x short), based on XRP futures contracts, not physical XRP. The SEC’s framework for approving futures ETFs is much less cumbersome — if the regulator doesn’t challenge the filing within a certain time frame, it goes into effect automatically.

Despite the misunderstanding, XRP’s resilience suggests that optimism remains intact, especially as the ruling on Grayscale’s application for a spot XRP ETF is set for no later than May 22

A futures ETF would enable one to gain access to the price of XRP without having to purchase the token itself. The new ProShares ETFs are going to be following XRP’s performance based on the XRP Index.