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ProShares to Launch Three XRP ETFs Following SEC Approval

ProShares, a prominent exchange-traded funds (ETF) issuer, is set to launch three XRP ETFs on April 30 after receiving approval from the U.S. Securities and Exchange Commission (SEC). The new ETFs include the Short XRP ETF, Ultra XRP ETF, and UltraShort XRP ETF, each offering unique leverage options for traders.

Details of the New XRP ETFs

The three XRP ETFs provide distinct trading opportunities:

  • Ultra XRP ETF: Offers 2x leverage, allowing traders to amplify their exposure to XRP price movements.
  • UltraShort XRP ETF: Includes inverse leverage of -2x, enabling traders to profit from downward price trends.
  • Short XRP ETF: Provides inverse leverage of -1x for those who anticipate smaller declines in XRP’s price.

These futures-based ETF products give traders access to XRP futures contracts that track the token’s price movements through an index. Unlike spot ETFs that require direct ownership of XRP tokens, futures XRP ETFs allow traders to speculate on price changes without holding the asset itself.

Spot XRP ETFs Await SEC Review

ProShares has also filed for spot XRP ETFs, which are currently under review by the SEC. Spot ETFs differ from futures ETFs by requiring actual possession of XRP tokens, providing a different investment strategy for traders.

Market Impact of XRP ETFs

The approval of ProShares’ XRP ETFs comes shortly after the first XRP ETF entered the market earlier this month. On April 8, Teucrium became the first firm to receive SEC approval for its XRP ETF, which is now trading on the New York Stock Exchange.

At the time of writing, XRP has seen a significant price increase of 4.86% over the past 24 hours, trading at $2.28 per token. Ripple’s market capitalization now exceeds $133 billion, with daily trading volume surging by 67.9% to $4.2 billion. This uptick in activity highlights growing interest in XRP investment products.

Institutional Interest in XRP ETFs

Institutional demand for XRP ETFs has been growing rapidly, driven by the token’s inclusion in the Trump administration’s crypto reserve. Asset managers such as Grayscale, Franklin Templeton, Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares have submitted applications for XRP-related investment products. However, the SEC has delayed its decision on Grayscale’s application, citing the need for further review.

The increasing number of XRP ETF applications underscores the token’s relevance in the evolving cryptocurrency investment landscape. As institutional players continue to explore opportunities in XRP, the market could see heightened activity and broader adoption of XRP-backed ETFs.

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