XRP news today: SEC Approves ProShares XRP Futures ETFs, XRP Price Jumps 3.5%

The U.S. Securities and Exchange Commission (SEC) has given the green light for ProShares Trust to launch three XRP futures-based exchange-traded funds (ETFs) on April 30. This approval comes after ProShares proposed these ETFs on January 17, just days before the inauguration of President Donald Trump, who has been known for his crypto-friendly stance. The proposed ETFs include the Ultra XRP ETF, which offers 2x leverage, the Short XRP ETF, which provides inverse (-1x) leverage, and the Ultra Short XRP ETF, which offers inverse (-2x) leverage. These ETFs will be the second, third, and fourth XRP-related ETFs to be launched in the U.S., following the first XRP futures ETF by Teucrium, which began trading on the New York Stock Exchange (NYSE) on April 8 and received a positive market response.

It is crucial to understand that a futures-based ETF provides exposure to the price movements of XRP futures contracts. ProShares’ ETFs will track the price of XRP through the XRP Index, allowing investors to place bets on XRP’s price without holding the token itself. This differs from a spot ETF, which would require buying XRP tokens. ProShares’ separate application for spot XRP ETFs remains pending with the SEC. Meanwhile, the first spot XRP ETF by Hashdex has already started trading in Brazil.

The launch of these XRP futures ETFs is significant as it offers a regulated way for investors to profit from the price movements of XRP, potentially attracting institutional interest. The approval of these ETFs has had a positive impact on the price of XRP, which rose by 3.5% over the past 24 hours to $2.27. This price movement is notable as it occurred against the broader market trend, where the prices of other major tokens, except for Bitcoin, declined over the same period. This indicates that the XRP price has experienced the largest spike among the top 10 tokens.

The launch of XRP-related ETFs in the U.S. is a significant development for Ripple, the company behind XRP. Ripple has had a contentious relationship with the SEC for years, but this has improved under the leadership of President Trump and his nominee, Paul Atkins, who became SEC chairman. Atkins, a crypto advocate and former SEC commissioner, has taken a different approach than his predecessors, acknowledging the need for regulatory attention and innovation in the crypto market. In 2020, the SEC sued Ripple, alleging that it violated securities laws by selling XRP, which the agency considered an unregistered security. However, in July 2023, Ripple secured a partial victory when a judge ruled that XRP does not qualify as a security when sold on secondary markets like exchanges. The judge levied a fine of $125 million, but the SEC appealed the decision. On March 19, Ripple CEO Brad Garlinghouse announced that the SEC has agreed to drop the appeal, subject to Commission vote and approval, marking a historic victory for Ripple. On April 10, Ripple and the SEC jointly filed a motion to pause the proceedings of the lawsuit to discuss settlement terms. The resolution of the Ripple SEC lawsuit will have broader implications for the crypto market, setting a precedent that tokens traded on exchanges are not necessarily securities.