The US Securities and Exchange Commission (SEC) has officially approved the ProShares Ultra XRP ETF for listing on NYSE Arca, marking a significant milestone in the crypto industry. Trading under the ticker UXRP, the leveraged futures-based ETF is set to launch imminently, expected to begin trading by the end of this week.
Leveraged Futures-Based ETF Without Direct XRP Ownership
Unlike traditional ETFs that hold the underlying asset, the ProShares Ultra XRP ETF offers investors 2x daily exposure to XRP’s price movements through futures contracts and swap agreements. This structure allows for leveraged trading on XRP’s price without actual token ownership. Designed primarily for short-term traders, the fund’s leveraged nature makes it unsuitable for long-term holders.
Additional XRP ETFs Awaiting Approval
ProShares has plans to expand its XRP product lineup with two more ETFs: the Short XRP ETF (XRPS) targeting -1x daily returns, and the UltraShort XRP ETF (RIPS) targeting -2x exposure. Both aim to deliver inverse price movements but are still awaiting regulatory clearance and DTCC eligibility. The tentative launch date for all three ETFs is set for July 18.
Crypto Legislation and Market Momentum
The ETF launch coincides with heightened crypto regulatory discussions during Crypto Week in Washington, D.C., where lawmakers are reviewing key legislation like the Clarity Act and the Anti-CBDC Surveillance State Act. This legislative activity, combined with growing institutional interest, has helped XRP’s price surge roughly 25% in the past week.
