XRP: Excitement and Misconceptions Surrounding ProShares' Futures ETF Launch
Securities and Exchange Commission (SEC) Grants Approval for ProShares' XRP Futures-Based Exchange-Traded Funds
Prepare for ProShares' XRP Futures ETFs to hit the market on April 30. Despite the anticipation, it's important to understand these aren't spot ETFs, but rather, they're tracking XRP futures contracts.
On the 28th of April, the news of the SEC's approval sent shockwaves through the market. XRP's price skyrocketed an impressive 6.35% due to the excitement surrounding a potential spot ETF, but alas, these ETFs are futures-based.
Fighting the Ripple Effect
XRP's resilience suggests that optimism remains strong in the face of confusion. The outcome of Grayscale's application for a spot XRP ETF is set for May 22.
Just like the ProShares ETFs, futures-based ETFs enable investors to access XRP’s price without purchasing the token. However, they track the token's performance based on the XRP Index.
Ripple's Rise Amid Market Slump
While most crypto markets slumped on the 28th, XRP demonstrated an impressive uptick. Despite Bitcoin's 1.79% drop, XRP surged to $2.28 with a massive 2.67% increase in its market cap. This green appearance in a sea of red reflects the psychological boost the approval provided, even though it's not the spot product many had hoped for.
Bracing for a Brighter Future
Ripple Labs emerged victorious in its legal battle with the SEC, resulting in a $125M settlement. This marks a step towards increased acceptance for XRP and the potential launch of new financial services.
The approval of XRP futures ETFs is a sign of Wall Street's growing interest in Ripple's technology, potentially paving the way for a spot ETF approval.
The Intersection of Trust and Distrust
The approval of XRP futures ETFs comes at a critical juncture. Improved regulation in the digital asset space, thanks to a crypto-friendly U.S. President and the appointment of Paul Atkins as SEC Chairman, sets the stage for a more positive future.
Investing in ProShares XRP Futures ETFs
To trade ProShares XRP Futures ETFs, investors will need to use a broker, as ProShares does not offer direct trading. Brokers like Fidelity, Robinhood, Vanguard, or TD Ameritrade can facilitate trading from April 30.
As XRP's presence in the traditional markets expands, the industry eagerly awaits the introduction of spot ETFs. These are the industry's "holy grail," offering direct, regulated access to XRP tokens and the potential to unlock billions in institutional capital.
More News: *XRP Spotlight: Brazil's B3 Debuts Pioneering Spot ETF***
[5]: https://www. Nasdaq.com/articles/what-to-know-about-the-proshare-s-xrp-etf-2021-04-28
- The launch of ProShares' XRP Futures ETFs is scheduled for April 30, tracking XRP futures contracts instead of the spot price.
- The news of the SEC's approval of ProShares' XRP Futures ETFs sent a ripple through the market, causing XRP's price to surge, but it's not the spot product many had anticipated.
- Futures-based ETFs like ProShares' allow investors to access XRP’s price without purchasing the token, tracking the token's performance based on the XRP Index.
- Bitcoin slumped on the 28th, while XRP demonstrated an impressive uptick, despite not being the spot product many had hoped for, providing a psychological boost.
- Ripple Labs' victory in its legal battle with the SEC marks a step towards increased acceptance for XRP and the potential launch of new financial services.
- The approval of XRP futures ETFs signifies Wall Street's growing interest in Ripple's technology, potentially paving the way for a spot ETF approval.
- To trade ProShares XRP Futures ETFs, investors will need to use a broker, such as Fidelity, Robinhood, Vanguard, or TD Ameritrade, from April 30, as ProShares does not offer direct trading.
