#XRPETFs

The U.S. Securities and Exchange Commission (US SEC) has approved the launch of a futures exchange-traded fund (ETF) for XRP by ProShares on April 30, the company said in a filing with the SEC. Here’s everything you need to know about XRP, the token creator Ripple, how this futures ETF will work, and other details.

When Was the XRP Futures ETF Proposed?

ProShares, which already offers a Bitcoin ETF, proposed the formation of three XRP-related ETFs in January — Ultra XRP ETF (with 2x leverage), Short XRP ETF (with inverse leverage (-1x)), and Ultra Short XRP ETF (with inverse leverage (-2x)), according to a report by CryptoSlate.

The ProShares XRP Futures ETF will track the price of XRP on the XRP Index, the report added.

The proposal on January 17, 2025, came after the "crypto-friendly" U.S. presidential election of Donald Trump, the report said.

Is This the First XRP-Related ETF?

No, the Teucrium XRP futures ETF began trading on the New York Stock Exchange on April 8.

Meanwhile, ProShares has also applied for a Spot XRP ETF, which is pending approval from the US SEC. A similar product by Hashdex — the world's first spot XRP ETF — was approved in Brazil last week.

What is a Futures ETF? How Will It Work?

Futures-based ETFs provide exposure to the price movements of XRP futures contracts and, unlike spot ETFs, will allow users to bet on the price of XRP without purchasing the tokens.