COINOTAG News reported on April 28th that the U.S. Securities and Exchange Commission (SEC) has given its approval for ProShares Trust to introduce three XRP futures-based exchange-traded funds (ETFs) on April 30th. These are the ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, and ProShares Short XRP ETF. This development offers investors a new avenue to gain price exposure to XRP without the necessity of holding the tokens directly, marking a vital enhancement in the ecosystem of XRP financial products.
Each of the three newly approved futures ETFs has distinct objectives. The ProShares Ultra XRP ETF aims to yield twice the returns of XRP futures prices, whereas the ProShares UltraShort XRP ETF is designed to provide double the inverse returns. Additionally, the ProShares Short XRP ETF targets a single inverse return. Their introduction broadens the trading strategy options available to investors, highlighting the growing mainstream interest in XRP and potentially setting a precedent for future spot ETFs.
According to SEC disclosures, the funds are administered by ProShare Advisors, with an annualized expense ratio of approximately 0.95%, which is competitive compared to actively managed funds, though slightly higher than standard stock ETFs. Following the approval announcement on April 27th, analytics from BiyaPay indicated a 3.5% increase in the XRP price, reaching $2.27, while its market capitalization stands at $312 billion. As of now, the price hovers around $2.34, reflecting investor enthusiasm regarding the ETF approval.
This approval places XRP futures ETF as the third cryptocurrency to receive a U.S. ETF nod, following Bitcoin and Ethereum, and marks the first explicit altcoin futures ETF. The implications for the future of XRP are significant, as this development may draw more capital into the associated market, thereby enhancing trading activities. Notably, BiyaPay, recognized as the world’s first multi-asset trading wallet, has integrated 30 fiat currencies with 200 cryptocurrencies, facilitating direct participation in U.S./Hong Kong stock markets and zero-fee transactions through a USDT 1:1 equivalent to USD.