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, these two new funds are "ProShares Ultra Solana ETF (SLON)" and "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 instead invest in regulated futures contracts.
According to a public letter released on Monday, the aforementioned ETFs have been approved for listing by NYSE Arca, a fully 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 undoubtedly reaffirms the increasing acceptance of cryptocurrency derivatives by institutions, especially the futures market that has been included in the 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 agencies grasp important indicators such as market liquidity, pricing mechanisms, and investor protection, serving as a reference for assessing the feasibility of spot ETFs in the future.
Currently, asset management companies including VanEck and Bitwise have submitted applications for SOL and XRP spot ETFs to the SEC, but have not yet received approval. ProShares' early entry into futures products is likely to become an important aid in overcoming regulatory hurdles for subsequent spot ETFs.
This article is authorized for reprint from: (Blocker)
Original title: (Paving the way for spot ETFs? ProShares launches SOL and XRP leveraged futures ETFs)
Original author: Block Girl MEL
The article titled 'ProShares launches SOL and XRP leveraged futures ETFs! Is this paving the way for spot ETFs?' was first published in 'Crypto City'
