Confusion swept through the cryptocurrency community after rumors suggested ProShares would launch XRP ETFs on April 30. Bloomberg ETF analyst James Seyffart clarified that no official launch date has been set, dispelling misinformation stemming from an outdated regulatory filing.
ProShares Denies April 30 XRP ETF Launch
James Seyffart confirmed via social media that reports of an April 30 launch were inaccurate. While he anticipates a launch in the short to medium term, ProShares clarified they have “no ETF launches scheduled for April 30.”
The rumors originated from a misinterpreted April 15 regulatory filing, which some outlets mistakenly reported as new information. Despite the clarification, XRP’s price remained resilient at $2.29, with:
– 24-hour trading volume: Up 28% to $4.53B
– Market cap: Rose 1% to $133.9B
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Futures-Based XRP ETFs: What Investors Should Know
Nate Geraci, President of The ETF Store, explained the upcoming ProShares ETFs will not be spot products. Key details:
– Exposure via futures: Leveraged and inverse options will track XRP price movements.
– Teucrium’s XXRP ETF: A 2x leveraged product launched earlier this month, currently managing $42.79M in assets.
| ETF Type | Mechanism | Example Product |
|---|---|---|
| Futures | Derivatives contracts | ProShares XRP ETF |
| Spot | Direct asset holding | Not yet available |
SEC’s Stance on XRP ETFs
The SEC has approved futures-based XRP ETFs but remains cautious about spot products. Compared to Brazil, where spot XRP ETFs are live, U.S. applicants like Grayscale and Bitwise face prolonged reviews.
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Key hurdles for spot ETFs:
1. Regulatory scrutiny over custody risks.
2. Concerns about market manipulation.
3. Need for compliant custodians.
Polymarket data shows a 78% chance of approval this year, up 8% amid ProShares’ ETF discussions.
FAQ: XRP ETFs Explained
Q: When will XRP ETFs launch?
A: No confirmed date. ProShares expects a rollout in the “short to medium term.”
Q: Are these spot ETFs?
A: No. Initial products will use futures contracts.
Q: Why is the SEC delaying spot XRP ETFs?
A: Stricter oversight requirements for direct asset custody.
Q: How does Teucrium’s XXRP ETF work?
A: It offers 2x daily XRP returns via swap agreements.
Q: What’s driving XRP’s price resilience?
A: Speculation around ETF approvals and broader crypto market trends.
Q: Which firms are applying for spot XRP ETFs?
A: Grayscale, Bitwise, and Franklin Templeton have pending applications.
Market Context and Analyst Insights
While futures-based ETFs face fewer hurdles, spot ETFs hinge on SEC Chair Gary Gensler’s stance. Analysts note:
– The SEC’s historical skepticism toward crypto ETFs.
– Brazil’s approval sets a precedent for global markets.
Bloomberg reports the SEC is reviewing applications meticulously, with no timeline for decisions.
Disclaimer: This content reflects market conditions and the author’s analysis. Conduct independent research before investing. Cryptocurrencies are volatile and high-risk.