SEC Approves ProShares XRP ETF: A Game-Changer for Crypto Investors
The U.S. Securities and Exchange Commission (SEC) has given the green light to ProShares Trust’s XRP futures-based exchange-traded funds (ETFs), marking a historic milestone for Ripple’s XRP. Set to launch on April 30, 2025, these ETFs promise to bring XRP closer to mainstream investors. Here’s everything you need to know about this exciting development in the crypto market.
What Is the ProShares XRP ETF?
On April 27, 2025, the SEC approved three XRP ETFs from ProShares Trust, a leading ETF provider. These funds—ProShares Ultra XRP, ProShares Short XRP, and ProShares Ultra Short XRP—offer unique ways to invest in XRP without directly owning the cryptocurrency. Unlike spot ETFs, these are futures-based, meaning they track XRP’s price through futures contracts and swap agreements.
- Ultra XRP ETF: Delivers 2x leveraged exposure to XRP’s daily price gains.
- Short XRP ETF: Bets against XRP’s price, offering inverse exposure.
- Ultra Short XRP ETF: Provides -2x leveraged inverse exposure for amplified bearish bets.
These ETFs will begin trading on April 30, 2025, on a yet-to-be-announced exchange, making XRP more accessible to both retail and institutional investors.
Why This Matters for XRP
The SEC’s approval is a big win for XRP, which has faced regulatory scrutiny for years. Following the announcement, XRP’s price surged 12.7% in 24 hours, climbing from $0.52 to $0.59 by April 27, 2025. Trading volume also spiked by 34.8%, hitting $2.1 billion on platforms like Binance and Coinbase.
On the XRP Ledger, daily transactions jumped 22% to 1.8 million, signaling heightened network activity. This surge reflects growing investor confidence in XRP’s role as a leading cryptocurrency for cross-border payments.
A Step Toward Institutional Adoption
The ProShares XRP ETFs are expected to attract hedge funds, pension funds, and other institutional players. By offering regulated exposure to XRP, these funds eliminate the need for direct custody, reducing risks for traditional investors.
“This approval is a game-changer,” said Nate Geraci, President of ETF Store. “It paves the way for broader crypto adoption, and I wouldn’t be surprised to see a spot XRP ETF approved soon.”
Bloomberg analysts Eric Balchunas and James Seyffart give a 75% chance of spot XRP ETF approval by December 2025, citing growing institutional interest and regulatory clarity.
The Bigger Picture: XRP ETFs in Context
The ProShares approval follows Teucrium’s launch of the first U.S. XRP futures ETF (XXRP) on April 9, 2025, which saw record-breaking first-day trading. Meanwhile, nine asset managers—including Bitwise, Grayscale, and WisdomTree—have filed for spot XRP ETFs, with SEC decisions expected by late 2025.
The SEC’s decision comes after a key legal victory for Ripple. In March 2025, the agency dropped its appeal in a 2023 ruling that clarified XRP’s programmatic sales are not securities. This ruling removed a major hurdle for XRP ETFs, boosting market optimism.
What’s Next for XRP Investors?
The ProShares XRP ETFs could enhance XRP’s liquidity and price stability, benefiting both traders and long-term investors. However, futures-based ETFs carry risks, including higher volatility and potential losses from daily rebalancing.
For traders, technical analysis shows XRP facing resistance at $0.62 and support at $0.55, offering opportunities for short-term plays. Binance’s XRP/USDT pair recorded $1.4 billion in volume on April 28, 2025, ensuring strong liquidity.
Looking ahead, a spot XRP ETF could unlock even greater capital inflows, potentially mirroring the $95 billion seen in Bitcoin ETFs as of March 2025. Crypto bettors on Polymarket estimate a 77% chance of spot ETF approval in 2025, reflecting strong community bullishness.
XRP and Ripple: A Quick Refresher
XRP, created by Ripple, is a cryptocurrency designed for fast, low-cost cross-border payments. With a market cap of $130.8 billion as of April 27, 2025, it ranks third among cryptocurrencies. The XRP Ledger, a decentralized network with independent validators, powers RippleNet, used by financial institutions worldwide.
The Bottom Line
The SEC’s approval of ProShares Trust’s XRP ETFs is a landmark moment for the crypto market. Launching April 30, 2025, these funds will make XRP more accessible, drive institutional investment, and set the stage for future altcoin ETFs. While risks remain, the future looks bright for XRP as it cements its place in regulated finance.
