In a major development for the cryptocurrency sector, the United States Securities and Exchange Commission (US SEC) has approved ProShares’ launch of XRP futures exchange-traded funds (ETFs), with trading set to begin on April 30, 2025.
This move is poised to reshape the landscape for XRP investors and highlights a broader shift in U.S. regulatory attitudes toward digital assets.
Understanding XRP and Ripple
XRP is a digital token created by Ripple Labs, a company focused on revolutionizing cross-border payments. Ripple’s network aims to connect international banks, enabling instant money transfers without the inefficiencies of traditional systems like SWIFT. XRP serves as a bridge currency within this network, offering rapid, low-cost transactions. A single cross-border transfer using XRP costs just a fraction of a cent, demonstrating its utility in real-world financial ecosystems.
Ripple’s ongoing legal battles with the SEC, which began in 2020, had cast a long shadow over XRP’s price. However, a more crypto-friendly political environment under President Donald Trump and recent developments hinting at a settlement have significantly improved sentiment around XRP.
What Are XRP Futures ETFs?
ProShares, already known for its Bitcoin Futures ETF (BITO), proposed three XRP-linked ETFs back in January 2025:
1. Ultra XRP ETF (2x leveraged)
2. Short XRP ETF (inverse -1x leveraged)
3. UltraShort XRP ETF (inverse -2x leveraged)
These futures ETFs will track XRP prices based on the XRP Index, allowing investors to speculate on XRP’s price movements without owning the actual token. This differs from spot ETFs, which require the fund to hold the underlying asset itself.
The ETFs will invest in a combination of XRP futures contracts, swaps, and cash balances in money market instruments, including U.S. Treasuries. Importantly, this offers a regulated pathway for investors to engage with XRP price trends while reducing direct exposure risks.
Why This Approval Matters
The approval of ProShares’ XRP futures ETFs is a watershed moment for several reasons:
1. Regulatory Recognition: It marks increasing acceptance of XRP as a legitimate asset class within regulated U.S. financial markets.
2. Institutional Interest: The move could unlock substantial institutional capital, mirroring patterns observed after the introduction of Bitcoin and Ethereum ETFs.
3. Market Sentiment: XRP prices have already reacted positively, surging over 6% to $2.28 in early trading on April 28, with daily trading volume soaring by more than 53%.
In contrast, Bitcoin and other major cryptocurrencies saw price declines during the same period, highlighting XRP’s relative strength.
Ripple’s Legal Saga and Future Prospects
The backdrop of these developments is Ripple’s legal battle with the SEC. However, recent reports indicate that Ripple and the SEC have reached an agreement to settle the case. As part of the settlement:
1. Ripple will pay $50 million of a previously escrowed $125 million penalty.
2. The SEC will withdraw its appeal regarding the “Programmatic Sales of XRP” ruling.
3. Judge Analisa Torres may lift the injunction on XRP sales to institutional investors.
If finalized, this settlement could remove a significant overhang on XRP and further boost its market credibility.
Broader Implications for XRP Spot ETFs
ProShares has also filed for a spot XRP ETF, which is currently pending SEC approval. A spot ETF would involve holding actual XRP tokens rather than futures contracts, offering a more direct exposure option to investors.
The precedent set by Brazil — where Hashdex recently launched the world’s first spot XRP ETF — suggests that once one major market opens the gates, others tend to follow. Betting platform Polymarket now places the odds of a U.S. XRP-spot ETF approval by December 2025 at 78%, up from 68% earlier this month.
Bloomberg Intelligence ETF analyst James Seyffart maintains high confidence in an eventual approval, predicting final decisions by October 2025.
XRP Price Outlook
Following the SEC’s announcement and broader market enthusiasm:
1. Current Price: $2.2335
2. Market Cap: $136 billion
3. 52-Week Range: $0.39 to $3.38
XRP is currently consolidating above key support levels near $2.10, with resistance around $2.22. A decisive breakout above $2.40 could set the stage for a retest of previous highs at $3.3999 and eventually its all-time high of $3.5505.
Still, downside risks remain, particularly if the Ripple-SEC settlement faces delays or if macroeconomic conditions worsen. A bearish scenario could see XRP retreat toward the $1.50 mark.
Conclusion: A Pivotal Moment for XRP and Crypto Markets
The launch of ProShares’ XRP futures ETFs is more than just a new investment product, it signals the maturing of the crypto industry and growing mainstream acceptance of alternative digital assets beyond Bitcoin and Ethereum.
With Ripple nearing a possible resolution with the SEC, rising institutional interest, and the growing likelihood of spot ETF approvals, XRP is well-positioned for a significant evolution in 2025 and beyond. However, investors should remain cautious and monitor legal and regulatory developments closely.
