The week kicked off with a rise in crypto prices, and XRP recorded the biggest price boost this week. The token jumped 6.2% in the past 24 hours to $2.32, aided by the launch of three new exchange-traded funds (ETFs) that provide investors with additional opportunities to earn from XRP. XRP is mainly used for payments on Ripple’s network. Bitcoin also rose slightly to $95,268, while $ETH increased to $1,817 and Solana to $151.70, according to CoinDesk.
ProShares Cleared to Launch XRP Futures ETFs
In January, ProShares Trust, a prominent provider of exchange-traded funds (ETFs), submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to introduce three new funds tied to the XRP cryptocurrency: the Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF. Rather than holding XRP tokens, these funds will use XRP futures contracts to track the token’s price movements, allowing investors to gain exposure to XRP without directly owning the asset.
Each fund targets a different market strategy. The Ultra XRP ETF aims to amplify returns when XRP’s price rises, while the Short XRP ETF and Ultra Short XRP ETF are designed to benefit from price declines, with the latter offering stronger inverse exposure. The SEC has not raised any objections to the filing, allowing ProShares to proceed with launching the ETFs and expanding XRP-related investment options.
SEC Clears Path for ProShares XRP ETFs
This news comes after Ripple’s legal dispute with the SEC was settled. In 2020, the SEC accused Ripple of selling an unregistered security. But in March this year, Ripple CEO Brad Garlinghouse announced that the SEC had dropped the case, calling it “a big win for Ripple and for crypto.”
Additionally, CME Group, a major trading platform, announced that it will begin offering XRP futures on May 19. The platform already offers futures for Bitcoin and Ethereum, and has recently added support for Solana.
Ripple SEC Ruling – Mixed Outcome
Ripple’s legal win does not clarify the broader regulatory questions surrounding digital assets. The SEC is still focusing on other cryptocurrencies, and many wonder if Ripple’s case will affect future legal actions. Issues such as the distinction between institutional and programmatic sales, and the degree of decentralization required to avoid classification as a “security,” remain unclear.
Rising Institutional Interest in Crypto
Despite regulatory challenges, more institutions are getting involved in crypto. The approval of XRP Futures ETFs and the CME Group’s launch of XRP futures demonstrate growing mainstream interest in digital assets. These developments could impact the price and adoption of XRP and other cryptocurrencies in the near future.
Final Thoughts
XRP’s recent surge indicates growing interest in the cryptocurrency market, driven by the launch of XRP Futures ETFs. While Ripple’s legal win is a significant step, many questions about crypto regulations remain unanswered. However, with more major institutions getting involved, like through XRP futures, it looks like crypto is gaining more mainstream acceptance. As the market continues to grow, clear rules will be important for the future of digital assets like XRP.
