Introduction to ProShares’ Futures-Based XRP ETF
ProShares, a key player in the exchange-traded fund market, has announced April 30 as a potential launch date for its futures-based XRP ETF. While this announcement signals confidence in the ETF’s readiness, the actual trading commencement on that date is not guaranteed. The company submitted its initial prospectus for this product back in January. Instead of investing directly in XRP tokens, this ETF will focus on futures contracts and swap agreements related to XRP. This move marks an important progression toward the eventual introduction of a spot-based XRP ETF.
Previous Success and Market Dynamics
Previously, ProShares gained attention in 2021 with the launch of the first futures-based Bitcoin ETF (BITO), which was met with significant success, though much of its demand was front-loaded. Notably, Anthony Scaramucci from SkyBridge Capital has voiced concerns regarding the previous SEC administration’s delay in approving a spot Bitcoin ETF, which finally came to fruition in early 2024 after a prolonged wait.
Market Predictions for XRP
With regard to XRP, market analysts suggest that the transition from a futures-based product to a spot ETF may occur more swiftly. Predictions indicate that a spot-based XRP ETF could receive approval as early as this year, contrary to prior delays experienced with Bitcoin. Current market sentiment from bettors on Polymarket seems to support this optimism.
Numerous applications are pending, including one from Franklin Templeton. Analyst Nate Geraci expressed strong confidence on social media, stating that he believes the SEC will approve a spot XRP ETF soon.
XRP’s Competitive Position
On another note, XRP has surpassed Solana in the competition for a spot ETF, bolstered by its increasing market activity and the successful launch of Teucrium’s leveraged XRP ETF.
