The approval of ProShares Trust represents a significant advance for cryptocurrency ETFs, suggesting a growing institutional interest in digital assets. The expected capital inflow and increased market liquidity indicate a possible shift towards widespread adoption of the asset.
ETF Structure and Market Expectations The ETF will not hold XRP directly but will use futures contracts to ensure compliance with current regulations. Key analysts, including those from JPMorgan, project capital inflows of up to $8 billion in a year, underscoring the high market anticipation. The depth of the market and the trading volume of XRP have surged in anticipation of the launch, boosting institutional interest. Historical ETF launches, detailed by Eric Balchunas, indicate both immediate market spikes and greater asset incorporation.
