Ripple Could Hit 2.50 as SEC Approves XRP Futures ETFs for US Launch

Based on available reports, the US Securities and Exchange Commission (SEC) has approved XRP futures ETFs, a major hurdle crossed for Ripple’s institutional journey. Per the news, they are expected to go live on April 30, 2025, and are being offered by ProShares, a well-known ETF issuer that specializes in leveraged crypto strategies.

XRP has already broken past key technical resistance and leveraged market activity is surging so traders and institutions are eyeing the $2.50 mark as the next big one.

ProShares Brings XRP to Wall Street Futures

According to the DTCC listing page, ProShares has gotten SEC approval for three XRP Futures ETFs. They are ProShares Ultra XRP ETF (2x long), ProShares Short XRP ETF (-1x inverse), and ProShares Ultra Short XRP ETF (-2x inverse). All three are expected to start trading on April 30, 2025.

However, the latest update from Bloomberg ETF analyst James Seyffart has caused a little uncertainty as regards the launch date. Seyffart took to his X account to deliver an update about the widely spread launch date, debunking the circulated date, claiming it hasn’t yet been confirmed.

However, the previous launch date had already spread like wildfire as the news came at a time when institutional appetite for altcoin exposure is growing fast. Investors believe developments like this is usually the precursor to spot ETF acceptance down the line.

Brazil Leads with Spot, US Joins with Futures

While the US is taking it slow, others are moving faster. On April 25, Brazil approved the first-ever XRP spot ETF, traded under the ticker XRPH11 on the B3 exchange. Managed by Hashdex, the ETF provides direct exposure to XRP’s spot price, something US investors are still waiting for, as the regulatory environment is still unclear.

Although a US spot XRP ETF is still in limbo, the futures approval is big. It’s a change of tone from the regulators and a psychological endorsement of XRP as a crypto asset class.

Open Interest Surges, Leverage Builds

After the ProShares announcement, XRP derivatives markets went crazy. Open Interest (OI) in XRP futures surged to $6.7 billion across major exchanges. The Estimated Leverage Ratio (ELR) hit a monthly high, meaning traders are getting more aggressive.

On the charts, XRP has broken above the $2.20 resistance and is consolidating at $2.29. If momentum holds, $2.50 is the next short-term target, and $3.20 is the next upside zone for some speculators.

Industry Reactions: Legitimacy and Liquidity

The SEC’s approval of XRP Futures ETFs is being seen as a legitimacy boost not just for Ripple but for the entire altcoin space. Analysts say, this is what institutional adoption looks like, gradual but deliberate.

Additionally,  the ETFs will deepen XRP’s liquidity profile, especially among traditional finance players who had been constrained by the regulatory ambiguity surrounding Ripple Labs’ legal battles with the SEC.

Ripple’s partial win in 2023, that XRP is not a security in secondary sales, cleared some air, but this ETF approval is the first tangible action from the SEC that seems to say XRP can exist in regulated products.

Traders Warned to Be Careful With High Leverage

Despite the positives, market veterans are cautious. Leverage-induced volatility can lead to big liquidations if the price retracts. XRP did this in early January when it hit $3.30 before correcting sharply and reportedly wiping out over $700 million in longs in a matter of hours.

Whenever OI and ELR spike together, it’s a double-edged sword; if $2.50 fails to hold, we could see fast downside due to cascading liquidations.

Conclusion: Futures First, Spot Next?

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With ProShares stepping in and the SEC allowing XRP futures ETFs, Ripple is starting to get the institutional foothold it has been seeking. The road to a US-based spot ETF is uncertain, but the futures market could be the testing ground.

As traders hold out for trading to begin, all eyes will be on volume, volatility, and if XRP can hold above $2.50 and push to new 2025 highs. Either way, this is a clear inflection point for XRP from a controversial altcoin to a regulated asset.

FAQs

When do ProShares’ XRP Futures ETFs go live?

It was previously expected to start April 30, 2025, pending final approvals, however, recent update from Bloomberg analyst James Seyffart has debunked this, saying the launch date remains uncertain.

Are these spot ETFs or futures-based?

Futures-based. The US has not approved an XRP spot ETF.

What kind of exposure do the ProShares ETFs offer?

2x long, -1x inverse, -2x inverse for XRP futures.

Why is this ETF launch important?

First time XRP is in a regulated US ETF, institutional validation and market access.

Glossary

XRP Futures ETF: An ETF that tracks XRP futures, not the spot price.

Open Interest (OI): The total number of outstanding derivatives contracts (futures) that haven’t been settled.

Estimated Leverage Ratio (ELR): The average leverage used by traders in the derivatives market, risk level.

Funding Rate: A periodic payment to balance the price of perpetual futures with the spot price of an asset.

Inverse ETF: An ETF that moves in the opposite direction of the underlying asset.

Soruces

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James Seyffart on X

Disclaimer: This is for informational purposes only ‘and not investment advice. Trading crypto and derivatives is high risk. Consult a licensed financial advisor before making investment decisions.