On April 30, 2025, the U.S. Securities and Exchange Commission (SEC) will mark a significant milestone with the launch of ProShares Trust's XRP-focused exchange-traded funds (ETFs). This move not only represents a pivotal moment for XRP's integration into mainstream financial markets but also reflects the growing institutional interest in the cryptocurrency world.
ProShares Trust, headquartered in Bethesda, Maryland, has submitted a Form N-1A to the SEC detailing plans for multiple XRP ETFs, including the ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, and ProShares Short XRP ETF. These funds are designed to provide investors with leveraged and inverse exposure to XRP price movements through futures contracts rather than direct ownership of the cryptocurrency.
This futures-based approach aligns with the SEC's previous approvals for other crypto ETFs, such as ProShares’ Ether Strategy ETF, which was launched in 2023 and tracked Ethereum futures. The SEC's decision to approve these ETFs comes amid a surge of interest in XRP, with nine companies, including Bitwise, 21Shares, and WisdomTree, having filed for XRP ETFs by March 2025.
XRP’s market cap has reached an impressive $127 billion, making it the fourth-largest cryptocurrency. As of April 25, 2025, XRP's price has surged to $2.18, marking a staggering 480% increase over the past month. This price surge has been fueled by regulatory optimism, particularly following Ripple's recent approval by the New York Department of Financial Services to launch a stablecoin.
Adding to this momentum, the CME Group plans to launch XRP futures on May 19, 2025. This anticipated move is expected to enhance liquidity and further bolster the prospects for the new ETFs. The regulatory landscape for XRP appears to be shifting in its favor, especially with Paul Atkins, who was nominated by President Trump and confirmed as SEC Chair on April 9, 2025. Atkins has expressed a commitment to prioritizing clear regulations for digital assets, which may expedite resolutions in ongoing crypto cases, including the SEC's longstanding lawsuit against Ripple.
A recent joint motion to pause appeals in the Ripple case was approved, suggesting a potential resolution that could clarify XRP's legal status. Market analysts at Kaiko Research have indicated that XRP ETFs have a higher likelihood of approval compared to other altcoins like Solana and Cardano, given XRP's established role in facilitating cross-border payments via RippleNet.
This ETF launch could be a catalyst for greater institutional adoption of XRP. Experts predict that major players in the ETF space, such as BlackRock, may soon file for their own XRP ETFs to avoid losing ground to competitors. However, challenges remain. The futures-based structure of the ETFs reflects the SEC's cautious stance on spot crypto ETFs, a distinction noted by industry observers.
Moreover, the ongoing SEC-Ripple lawsuit introduces a layer of uncertainty, prompting investors to keep a close eye on XRP's price around the $2.00 level. Key technical indicators suggest that the 200-day EMA is at $1.96, with resistance at $2.22. The ETF launch, combined with a pro-crypto U.S. Congress and a more favorable regulatory environment under the Trump administration, positions XRP for potential growth, although price volatility is expected as these developments unfold.
In a related development, Brazil has taken a significant step in the crypto market by launching the world’s first spot XRP ETF, XRPH11, on B3. This ETF, created by Hashdex and Genial Investimentos, is designed for advanced investors and will hold at least 95% of its assets in XRP, custodied by Genial Bank SA. The approval of a U.S. XRP ETF could significantly boost institutional demand, especially as Brazil's crypto market share currently stands at just 0.9% of the global market.
Recent inflows into XRP funds indicate strong institutional interest, with XRP funds leading crypto ETP inflows last week with $37.7 million. JPMorgan has predicted that global crypto ETPs could see up to $8 billion in inflows, suggesting substantial upside potential for XRP. However, risks remain; Brazil's Solana ETF saw little demand, and XRPH11 might face similar challenges if trading volume does not increase.
For XRP, a slow start could lead to short-term volatility, but steady growth in assets under management (AUM) would contribute to price stability over time. As XRP trades at $2.18 amid these developments, the market is abuzz with speculation about its future.
In the U.S., the approval process for XRP ETFs is still underway. Firms like Grayscale and Bitwise have filed applications, and the Polymarket prediction market gives a 74% chance of U.S. approval in 2025. With the new SEC Chair Paul Atkins being pro-crypto, industry experts believe that the approval process may accelerate.
Nate Geraci, president of the ETF Store, expressed confidence in the approval of XRP ETFs, calling it “a no brainer.” If approved, a U.S.-listed XRP ETF could unlock institutional demand and supercharge XRP’s long-term growth potential.
In terms of technical analysis, XRP/USD is currently trading at $2.17, above a trendline that has provided support since mid-April. The 50 EMA is holding at $2.16, with immediate resistance at $2.27. A breakout above this level could propel XRP to targets of $2.33 and $2.40, making it an exciting time for traders and investors alike.
As the cryptocurrency landscape continues to evolve, the launch of these ETFs and the ongoing regulatory developments will likely play a crucial role in shaping XRP's future and its position in the broader market.
