An exciting development is brewing for XRP in the crypto world. Ripple's native token, XRP, is getting its first leveraged XRP ETF, which will be listed on the exchange on July 18th. The Ultra XRP ETF (UXRP), launched by ProShares, has received approval from the US Securities and Exchange Commission (SEC) and is preparing to list on the New York Stock Exchange's NYSE Arca. This could be a potential turning point for the XRP ecosystem.
The first leveraged XRP ETF is unveiled
ProShares' UXRP ETF aims to offer investors a leveraged investment product that targets twice the daily price movements of XRP. This creates an opportunity for investors looking to capitalize on short-term fluctuations in the XRP price to take positions without directly owning the token. Of course, such leveraged products, which recalibrate daily, carry additional risk; however, the growing adoption of XRP, especially in cross-border payments, makes its long-term prospects strong. ProShares is also launching a similar product for Solana (SOL), the Ultra Solana ETF (SLON). CEO Michael L. Sapir said, “As cryptocurrencies gain wider adoption, investors are turning to next-generation blockchain technologies like Solana and XRP. SLON and UXRP will help investors overcome technical challenges by providing leveraged access to these assets.”
A New Gateway for Institutional Investors
ProShares is now leveraging its experience with Bitcoin and Ethereum futures ETFs to XRP. The UXRP ETF provides institutional investors with regulated exposure to XRP without the complexities of direct crypto custody. This could facilitate XRP's wider acceptance in mainstream financial markets.
Another noteworthy development ahead of the ETF launch is the on-chain whale activity. The number of wallets with a balance of 1 million XRP or more has reached a record high. This growing accumulation indicates a significant increase in investor confidence and the potential for a significant capital inflow into the market with the ETF.
Ripple Lawsuit and Price Expectations
In addition to all these developments, the ongoing lawsuit between Ripple and the SEC is also nearing its conclusion. A potential settlement and the official launch of the ETF could put significant upward pressure on the XRP price. In other words, the UXRP ETF is not only a new investment product; it could also be a potential catalyst for the XRP ecosystem.
This move by ProShares could pave the way for leveraged ETFs not only for XRP but also for the overall crypto market. Starting July 18th, both institutional and individual investors will have new access to XRP.
