Latest Developments of the US XRP ETF

ProShares Launches XRP Futures ETF: ProShares plans to launch three XRP futures ETFs on April 30, 2025, namely Ultra XRP, UltraShort XRP, and Short XRP, providing investors with different leverage and hedging options. FXEmpire

Teucrium Launches Leveraged XRP ETF: Teucrium's 2x leveraged XRP ETF (XXRP) has been listed in the US, with a first-day trading volume of $5 million, indicating strong market interest in XRP investment products. CoinDesk +2

CME Group Plans to Launch XRP Futures: CME Group announced that it will launch XRP futures contracts on May 19, 2025, further expanding its cryptocurrency derivatives product line. 9306269698093062696980's 'Impossible Triangle': The Ultimate Test of Law, Liquidity, and Ecological Game]

💡 In-Depth Perspective: If the XRP spot ETF is approved, it will face three unique challenges, far exceeding the complexity of BTC/ETH ETFs:

1️⃣ Custody Predicament:

- Ripple Labs holds over 50 billion XRP (accounting for 50% of the total supply), and traditional ETFs require strict separation between the issuer and the asset issuer, making it a significant compliance barrier to prove 'decentralization'.

- Referring to the Grayscale GBTC model, the XRP ETF may need to commit to periodically burning custodial tokens, but Ripple's lock-up mechanism has not clearly supported this operation.

2️⃣ Liquidity Layering Risk:

- The XRP spot market lacks depth (the current Binance order book spread is three times that of BTC), and ETF market makers may face high slippage costs, leading to potential impacts on XRP prices.

Optimistic Scenario: If the SEC approves the XRP ETF and reaches a favorable settlement agreement with Ripple, the XRP price could break the historical high of $3.55 and even challenge $5 in the medium term.

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・Pessimistic Scenario: If the SEC rejects the ETF application or the legal dispute with Ripple continues, the XRP price could fall back to $1.50.

Summary

The development of the XRP ETF is at a critical juncture, with the listing of the spot ETF in Brazil and the launch of futures ETFs in the US showing strong market demand for XRP investment products. In the coming months, the SEC's review results will significantly impact XRP's market performance, and investors should closely monitor relevant developments. By the end of April 2025, significant progress has been made in the development of the XRP ETF, especially in the Brazilian and US markets. These advancements could have a profound impact on XRP's price and market acceptance.

The world's first spot XRP ETF launches in Brazil

April 25, 2025, Asset Management