U.S. asset management company ProShares has once again entered the cryptocurrency market, with two leveraged futures ETFs tracking the price trends of Solana (SOL) and Ripple (XRP) officially listed on NYSE Arca on Tuesday.
According to the official announcement, the two new funds are the "ProShares Ultra Solana ETF (SLON)" and the "ProShares Ultra XRP ETF (UXRP)", both offering 2x leveraged returns. However, unlike spot ETFs, these two funds do not hold any SOL or XRP spot assets, but rather invest in regulated futures contracts.
According to a letter made public on Monday, the aforementioned ETFs have been approved for listing by NYSE Arca, an all-electronic exchange under the New York Stock Exchange, and the U.S. Securities and Exchange Commission (SEC).
Although futures ETFs do not provide investors with direct exposure to spot prices, their successful listing and trading undoubtedly reaffirm the growing acceptance of cryptocurrency derivatives among institutions, especially with the futures market being included in a regulatory framework, becoming an important bridge for institutions to enter the cryptocurrency space.
Looking back, futures ETFs have always been viewed as a key outpost for spot ETFs. The regulated futures market behind them helps regulatory authorities grasp important indicators such as market liquidity, pricing mechanisms, and investor protection, serving as a reference for future evaluations of the feasibility of spot ETFs.
Currently, asset management companies including VanEck and Bitwise have submitted applications for SOL and XRP spot ETFs to the SEC, but none have been approved so far. ProShares' proactive positioning in futures products is likely to become an important aid in breaking regulatory barriers for subsequent spot ETFs.
"Laying the Groundwork for Spot ETFs? ProShares Launches Leveraged Futures ETFs for SOL and XRP" was first published on (Block Business).
