The cryptocurrency market is marking another dramatic milestone today: the U.S. Securities and Exchange Commission (SEC) has granted preliminary approval for the launch of three innovative Exchange-Traded Funds (ETFs) based on futures contracts for XRP, the digital token issued by Ripple. This is a significant step forward, signaling regulatory progress for the token and opening the door for institutional investors seeking exposure to XRP through traditional financial instruments.

Sharp Price Jump – XRP Strengthens Its Market Position
Following the announcement, XRP's price surged by 7.6% over the past 24 hours, reaching $2.34 — a new local high for 2025. With a total market capitalization of $133.7 billion, XRP now ranks fourth among the largest digital assets, behind Bitcoin, Ethereum, and Binance Coin.

Details of the New ProShares ETFs
ProShares, a company with extensive experience in the ETF space, is expected to launch three new products:

• Ultra XRP ETF – a leveraged fund offering 2x exposure to XRP price movements. For example, a 1% rise in XRP’s price would generate an approximate 2% gain in the fund.

• Short XRP ETF – a fund designed for investors who believe XRP’s price will fall and want to profit from that decline.

• Ultra Short XRP ETF – a fund with double inverse leverage (2x-), aiming to generate higher returns as the price drops more sharply.

This move places XRP alongside Bitcoin and Ethereum, which already have several ETFs tied to both futures and spot prices. However, it's important to note that there is still no approval for a spot XRP ETF, a development eagerly awaited by many in the market.

Wider Market Implications
The ETF approval is a key signal for investors — not only regarding XRP but also in terms of the SEC’s evolving stance on alternative tokens. This could pave the way for future ETF approvals based on other cryptocurrencies like ADA, SOL, and LINK.

Looking Ahead: Just the Beginning?
The market’s positive reaction was swift, and not just from retail traders. Analysts believe this development will boost investor confidence in XRP and reinforce its position as a legitimate alternative to traditional payment systems. If a spot ETF is eventually approved, we may see another surge in price and trading volume.

While everyone is asking, "What’s the SEC’s next move?" investors are asking a different question:
Is XRP on its way to overtaking Ethereum?

By Aharon Porat, CryptoJungle