Market News

SEC Greenlights Ripple's Futures ETFs, Boosting XRP by 8%

The US Securities and Exchange Commission (SEC) has recently approved three ProShares XRP ETFs, leading to an 8% surge in the price of the Ripple token, XRP.

These ETFs include an Ultra XRP ETF that offers 2x leverage, along with both Short and Ultra Short XRP ETFs, with the rollout scheduled for April 30.

It's important to note that these are futures ETFs rather than spot ETFs; the former speculates on price movements without purchasing actual XRP.

In contrast, a spot ETF would directly acquire XRP, thereby generating tangible demand for the token.

The approval follows the successful launch of Teucrium’s 2x XRP fund, which became the first XRP ETF in the US, achieving over $5 million in trading on its debut.

Market observers have expressed concern about why futures ETFs are being prioritized over pending spot ETF applications.

As investors await a significant decision regarding these spot ETFs, the deadline for Grayscale’s filing approaches on May 22, which could further affect asset flows.

This recent development comes on the heels of Ripple's legal victory against the SEC, marking a pivotal shift for XRP in the traditional financial space.

Given the increasing focus on derivative products, the future landscape of XRP trading may experience both challenges and opportunities in the coming weeks.

The SEC’s moves reflect a broader acceptance of cryptocurrency in regulated markets, possibly signaling further innovations ahead.