ProShares Ultra XRP ETF green light on NYSE Arca sends sets off Ripple rally

XRP broke out of its range on Tuesday, rapidly rising to $2.92 in reaction to the news of the trading approval for the ProShares Ultra XRP ETF on NYSE Arca. 

The NYSE Arca exchange posted its letter of approval for the ProShares Ultra XRP ETF. The approval is seen as an immediate green light for the ETF trading. The new fund will be launched in accordance with the Securities Exchange Act of 1934.

The US Securities and Exchange Commission listed the fund as “Approved” from July 14 onward. The NYSE Arca has already set up a trading page with the UXRP ticker. 

The fund’s prospectus has also been filed with the SEC in preparation for imminent launch. The ProShares Ultra XRP ETF is expected to start trading on July 18. 

Based on the prospectus, the current ETF will not invest in XRP directly, thus not providing demand similar to the older BTC and ETH funds.

The ProShares Ultra product will seek performance based on the Bloomberg XRP index, tracking the price without buying the underlying asset. The fund aims to reach 2X the performance of XRP within the span of a day, though not guaranteeing the performance. The 2X metric does not apply to longer time periods. 

The new leveraged ETF is seen as a more liquid option, suitable for institutions and large-scale investors. 

XRP breaks out following Proshares Ultra ETF news

Following the news of the ETF approval, XRP rallied to $2.92, breaking out of its recent range. XRP has been anticipating the news of an ETF, but the actual announcement served as a trigger for the market price. 

XRP was bound in a range close to $2.80, while BTC set its new series of records. This time, XRP broke out again, setting expectations for recovering above $3. The asset was already showing liveliness following the launch of the leveraged 2x XXRP ETF. The XXRP ETF accrued assets of over $165M under management in the initial days of trading. 

The market is now anticipating a spot ETF, which could further boost the mainstream adoption of XRP. The asset has yet to recover its previous all-time high and enter price discovery. XRP notoriously skipped one bull cycle, hovering near its price minimum due to the protracted lawsuit against the SEC.

XRP awaits multiple ETF launches

XRP awaits multiple launches for funds in various stages of approval. In the past few months, XRP has been considered as one of the most probable assets for an ETF, alongside Solana (SOL). 

In July, multiple deadlines for XRP funds will draw attention to the asset. The Rex-Osprey XRP ETF is expecting approval on July 25, while the Turtle Capital ETF expects a statement as early as July 16.

A series of approvals could bring XRP price to a higher range, especially after demand for spot funds comes in. At one point, XRP had over 19 active ETF applications, including a recent filing from Trump’s Truth Social.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now