ProShares Wants in on XRP Futures
Spot ETFs are a sign that a cryptocurrency is earning a place in traditional investing. Futures are a start.
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Time keeps on slipping…into the futures.
ProShares aims to launch three XRP futures-based exchange-traded funds, according to a filing with the Securities and Exchange Commission on Monday. The issuer’s latest registration statement cited May 14 as the approximate launch date for the three ETFs. Earlier this week, news outlets reported the launch could come as soon as today, but those reports were inaccurate, according to ProShares. It did not provide any further information on the funds.
While spot ETFs, which directly hold the underlying asset, are a telltale sign of a cryptocurrency earning a place in traditional investing, futures ETFs are certainly a starting point toward wider XRP adoption.
“Spot ETFs represent a major step toward mainstream adoption,” said Martin Leinweber, director of digital asset research at MarketVector Indexes, adding that they more closely align with traditional asset allocation strategies and are appealing to long-term investors and financial advisors.
The More the Merrier
Though not the first of their kind, the ProShares funds would mark the second, third, and fourth ETFs tied to XRP after Teucrium launched its own futures ETF earlier this month. “Investor appetite appears strong,” Leinweber told ETF Upside, adding that the Teucrium 2x Long Daily XRP ETF recorded more than $5 million in trading volume upon its debut, placing it among the top 5% of ETF debuts historically.
The three ProShares funds include:
- Short XRP ETF, which will provide inverse (1x) leverage of the daily performance of the XRP index
- Ultra XRP ETF, which will provide 2x leverage
- Ultra Short XRP ETF, which will provide inverse (2x) leverage
Variety Hour: XRP is the fourth-largest cryptocurrency in the world, with a market cap of more than $132 billion. However, that’s only about 7% of Bitcoin’s market cap of more than $1.8 trillion, and Bitcoin is also the favored cryptocurrency when it comes to ETFs. But opportunity is knocking for altcoin investment products as Paul Atkins chairs a more crypto-friendly SEC, Leinweber said.
“More variety is on the horizon,” he said, adding that while Bitcoin’s outsized market cap and its “digital gold” narrative ensure it will remain a centerpiece for ETF products, the rise of high-cap altcoin ETFs is encouraging.
