- Bloomberg and ProShares say no XRP ETF launch following an old filing ends in confusion.
- ProShares to offer futures-based XRP ETFs, spot ETFs still under SEC review.
- XRP trades around $2.28, holding steady despite ETF rumor-driven volatility.
Excitement surrounding a possible XRP exchange-traded fund (ETF) launch collapsed after Bloomberg ETF analyst James Seyffart and ProShares representatives confirmed no XRP ETF launch on April 30. The correction comes after misinformation spread widely across social media, driven by misinterpreting an older regulatory filing.
Bloomberg’s James Seyffart addressed the rumors, confirming that reports suggesting a ProShares XRP ETF would debut on April 30 were inaccurate. Seyffart noted that although a futures-based XRP ETF from ProShares is possible in the short to medium term, no specific launch date has been scheduled.
A ProShares representative also echoed the need for clarification, saying, “It is important to note that ProShares does not have any ETF launches planned for Wednesday, April 30. We have no other information to provide at present.” The misunderstanding arose from a document filed on April 15th, which some media organizations misunderstood as fresh news, thus causing rumors on social networking sites.
Futures-Based ETFs, Not Spot Products
Although investors expected a spot XRP ETF, the upcoming ProShares products are expected to reflect XRP futures. Nate Geraci, President of The ETF Store, pointed out that the planned ETFs will not invest directly in XRP but in futures contracts to gain exposure. Geraci also noted that the new products would be specifically leveraged and inverse ones, which will enable investors to handle the fluctuations in the XRP price differently.
In addition, Geraci referenced Teucrium’s launch of the 2x Long XRP ETF (XXRP) earlier this month. The XXRP fund, which enables double the return of XRP for every swap agreement, has a total of $42,798,331in assets on hold.
SEC Maintains Caution Over Spot XRP ETFs
The US Securities and Exchange Commission (SEC) still considers several spot XRP ETF applications from asset management firms such as Grayscale, Bitwise, and Franklin Templeton. While futures-based ETFs do not undergo such a procedure, spot ETFs are analyzed more carefully, and the SEC assesses their risks.
Nevertheless, there have been changes to the market perception regarding the possible approval of an XRP ETF. Analyzing Polymarket data, the chances of spot Ripple ETF approval this year went up by 8% and are currently at 78% due to rising talk about ProShares’ futures-based plans.
Bloomberg also mentioned that the SEC’s watchful eye will not guarantee clear approval, and the process is still under review. As mentioned earlier, the forthcoming activities of the newly appointed SEC chair, Paul Atkins, will have a decisive impact on elaborating further strategies for the companies’ applications.
XRP Market Holds Steady Despite Misinformation
Despite the hype of debunked ETF rumors, XRP remained stable in the market. At press time, XRP is priced at approximately $2.28 and has been down 0.26% in the last 24 hours, as per data provided by CoinMarketCap. The digital asset price rose above $2.34 earlier in the day but declined to the $2.26-2.30 range.
The market capitalization for XRP was $133.3 billion, and a 24-day trading volume was reported to be $3.87 billion, though it was a 7.85% decrease. This pointed to moderate market activity, as 2.93% was recorded in the volume-to-market cap ratio. As per the latest data, the circulating supply of XRP was 58.44 billion out of the total supply limit of 100 billion, which proves the company’s consistent supply chain management.
