XRP ETFs on Hold: What Investors Need to Know Now

The crypto world was buzzing last week with rumors that ProShares would finally launch its long-awaited XRP ETFs on April 30. But then came the surprise: ProShares dashed hopes, stating no new XRP ETFs would debut on that date. What happened? Let’s dig into the details—because this delay isn’t just about timing. It’s about regulation, risk, and what comes next for XRP’s institutional future.

The Approval, the Delay, and Why It Matters

ProShares had indeed received tacit SEC approval for three leveraged XRP ETFs back in January 2025. The SEC’s standard 45-day review period ended without objection, which typically greenlights such products. The ETFs—Ultra XRP (2x), Short XRP (-1x), and Ultra Short XRP (-2x)—are futures-based, meaning they track XRP via derivatives, not direct holdings. This structure aligns with the SEC’s cautious stance on crypto ETFs, which prefers futures over spot exposure to mitigate volatility risks.

But here’s the twist: ProShares delayed the launch anyway. Why? The firm cited “ongoing processes” and a need to finalize documentation, even after the SEC’s non-objection. Analysts speculate this could involve coordinating with the CME Group’s planned XRP futures launch on May 19, or addressing lingering concerns about leveraged ETF risks. Either way, investors are left waiting—and the market is still hungry.

The Ripple Effect (and the Legal Win)

XRP’s regulatory roadblock was cleared in March 2025 when the SEC dropped its appeal of a court ruling that XRP isn’t a security on secondary markets. This resolved a years-long legal battle with Ripple Labs, the company behind XRP. The decision was a game-changer: it opened the door for institutional investment, and XRP’s market cap surged to over $127 billion by April 25, making it the fourth-largest cryptocurrency.

But here’s the catch: spot XRP ETFs—those holding the actual asset—are still pending with the SEC. ProShares, Grayscale, and others have applications under review. Meanwhile, the first XRP ETF (Teucrium’s 2x leveraged fund) launched on April 8, which is unusual because leveraged ETFs typically follow spot products, not precede them.

Risks and Rewards: The Leveraged Lure

ProShares’ ETFs are a double-edged sword. Leveraged funds (like 2x or -2x) can amplify gains in volatile markets—but they also decay over time due to daily rebalancing. Morningstar analysts warned that these ETFs “aren’t buy-and-hold tools.” For instance, if XRP falls 10% in a day, the Ultra Short ETF (-2x) might gain 20%, but prolonged volatility could erode returns.

Investors are also watching key technical levels: $2.00 (support) and $2.22 (resistance). A break above $2.22 could signal a bullish shift, but a drop below $2.00 might trigger profit-taking.

The Bigger Picture: Why This Matters

The delay isn’t just about XRP—it’s a litmus test for crypto’s institutional future. The SEC’s approval of futures-based ETFs (like ProShares’) suggests it’s slowly opening doors to regulated crypto exposure. But spot ETFs remain the holy grail, and their delayed approval highlights the SEC’s lingering caution.

Meanwhile, the CME’s May 19 XRP futures launch will add liquidity and credibility. Brazil’s Hashdex already beat the U.S. to the punch with a spot XRP ETF (XRPH11) in April, but U.S. investors are still waiting.

The Bottom Line: What to Do Now

1. Stay patient on spot ETFs: The SEC’s approval of futures-based products first is a sign they’re moving cautiously. A spot ETF could still come by year-end, but don’t bet on it.
2. Mind the risks of leverage: If you’re buying ProShares’ ETFs when they finally launch, treat them as short-term tools, not long-term holds.
3. Watch XRP’s fundamentals: Its role in cross-border payments via RippleNet and the SEC’s regulatory clarity are big pluses.

The XRP ETF saga is far from over. While ProShares’ delay is a hiccup, the broader trend is clear: crypto is moving into the mainstream. But as always, do your homework—and remember, volatility is the name of the game here.

Final Verdict

XRP’s journey to institutional legitimacy is gaining steam, but it’s still a bumpy road. The delay of ProShares’ ETFs isn’t a setback—it’s a reminder that regulation moves slowly, even when the market is screaming ahead. For now, focus on the fundamentals: XRP’s $127 billion market cap, its use cases, and the SEC’s shifting stance. And when those leveraged ETFs finally launch, tread carefully—they’re powerful tools, but only for those who understand the risks.

This is a race to the finish line, and the SEC’s next move could make all the difference. Stay tuned.