TL;DR
In recent developments, Teucrium and ProShares have received regulatory approval to launch futures-based XRP ETFs in the United States. These new funds provide leveraged exposure to XRP’s price movements, although they do not hold actual tokens. Meanwhile, major firms are still awaiting SEC approval for a spot XRP ETF, with Franklin Templeton’s decision delayed until June 17, but there’s optimism for potential approval later in 2025.
Teucrium Paved the Way
In the past year, multiple companies have pursued the launch of an exchange-traded fund (ETF) tracking Ripple’s native token in the USA. Earlier this month, Vermont-based asset manager Teucrium made headlines as the first to introduce such a financial vehicle in the world’s largest economy.
Its product, called Teucrium 2x Long Daily XRP ETF (XXRP), was listed on NYSE Arca and offers investors leveraged exposure to the daily price movements of the cryptocurrency. The ETF had a solid start, generating approximately $5 million in trading volume on its debut day.
Recently, the US Securities and Exchange Commission (SEC) approved the launch of three more XRP ETFs issued by ProShares. The Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF were initially expected to go live on April 30, although a Bloomberg Intelligence research analyst indicated the actual launch might take place in the short or medium term.
According to updated filings with the SEC, these products are now set to become available on May 14. Both Teucrium and ProShares’ investment vehicles are futures-based, providing exposure to XRP’s price through derivatives, but do not hold real tokens, prompting questions about when a spot ETF will emerge in America.
Decision Delayed
Prominent names such as Grayscale, Franklin Templeton, 21Shares, WisdomTree, and Bitwise are vying for approval to launch a spot XRP ETF. If approved by the SEC, such a product would simplify the investment process, allowing investors to gain exposure to Ripple’s native token easily as purchasing a spot ETF would operate similarly to buying stocks.
With the SEC undergoing significant leadership changes, Paul Atkins has been appointed as the new Chairman and has previously demonstrated a pro-crypto stance, fueling hopes within the Ripple community that a spot XRP ETF might soon be on the horizon.
However, recent SEC actions have tempered those expectations. The Commission delayed its decision on Franklin Templeton’s proposed product, setting a new deadline of June 17. Industry analysts have pointed out that this timeline is ‘intermediate,’ indicating that further delays are possible.
Despite this recent setback, the chances for approval remain promising. Eric Balchunas, a Senior ETF analyst at Bloomberg, has estimated an 85% probability for such a product to go live sometime in 2025. Additionally, Polymarket reflects a similar sentiment, placing the odds at around 80%.
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