ProShares’ XRP Futures ETF Approved by NYSE Arca

NYSE Arca announced the approval of the ProShares Ultra XRP exchange-traded fund (ETF) for listing in a letter sent to the U.S. Securities and Exchange Commission on Monday. The ProShares Ultra XRP ETF, or UXRP, operates as a futures-based investment vehicle, which means it does not offer direct exposure to XRP’s performance. Futures-based crypto ETFs have received approvals for listing and have begun trading faster than spot ETFs. While the exact trading start date for UXRP remains uncertain, many anticipate it could launch as early as this week. According to the company’s website, the UXRP fund aims for daily investment results that correspond, before fees and expenses, to twice the daily performance of its underlying benchmark. ProShares emphasizes that investors seeking direct exposure to XRP might want to consider other investment avenues. XRP, as a relatively new asset class, faces rapid changes and uncertainties. The fact sheet warns investors about unique and substantial risks, including price volatility and liquidity issues tied to supply and demand fluctuations, as well as influences from media and market sentiment. In January, ProShares proposed three XRP-based funds, including UXRP, a Short XRP ETF, and an Ultra Short XRP ETF. Numerous firms have also filed proposals for ETFs that track cryptocurrencies beyond Bitcoin and Ethereum, such as Solana, XRP, and Dogecoin. Bitcoin and Ethereum spot ETFs have been trading since last year, with BlackRock’s spot BTC fund, ticker symbol IBIT, leading the market. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a significant investor in The Block, investing in other companies within the crypto space. The Block operates independently to provide unbiased, relevant, and timely information about the crypto industry. This article is for informational purposes only and does not constitute legal, tax, investment, or financial advice.