A wave of funds quoted in the stock market (ETF) linked to XRP, the cryptocurrency issued by Ripple Labs, has unleashed enthusiasm among investors.
The possibility that these financial instruments, especially the ETFs in cash, drive the price of XRP and open the doors to greater institutional adoption It generates unprecedented expectations.
However, the history of cryptocurrencies teaches that optimism does not always translate into tangible results. Although ETFs represent an opportunity, they do not guarantee a sustained increase in price.
Investors They must keep the head cold and analyze the risks before being carried away by euphoria.
A new chapter for XRP in financial markets
XRP’s financial panorama has taken a significant turn in recent weeks. On April 9, 2025, the “Teucrium 2x Long Daily XRP ETF» (Ticker XXRP) fund began to quote in the US market, as reported by cryptootics.
This ETF, designed to double XRP’s daily performance through 2x leverage, allows investors to amplify their profits – or losses – in short -term operations.
For example, if XRP rises 5% in one day, the fund should increase by 10%; If 5%fall, the fund would lose 10%. However, its structure based on daily capitalization makes it less suitable for long -term strategiessince the performance can deviate from the double of the XRP movement over time.
On the other hand, Proshares, a fund manager with experience in cryptocurrencies, has generated expectations with its plan to launch three ETFs based on XRP futures: Ultra XRP ETF, Short XRP ETF and Ultra Short XRP ETF. The first seeks to double XRP’s daily performance with 2x leverage; The second, an inverse ETF, gains value when XRP falls; and the third combines the reverse strategy with a leverage of 2x.
Proshares is not a rookie in this field: in 2021 he launched the first ETF of Bitcoin’s futures, the proshares Bitcoin Strategy (Bito), which marked a milestone in the integration of cryptocurrencies in traditional markets.
Initially, it was announced that these ETFs would debut on April 30, but James Seyffart, ETF specialist at Bloomberg, clarified that there is no confirmed date. «There is still no established release date, but we believe that they will probably be launched in the short or medium term,» Seyffart said. If the Bag and Securities Commission (SEC) does not intervene, the ETFs could automatically enter into force once a date is set, following the standard procedure for this type of instruments.
In addition, the Chicago Mercantile Stock (CME) confirmed that On May 19, 2025 will begin negotiating XRP futures in large contracts (50,000 XRP) and Micro (2,500 XRP).
These contracts allow Specular investors on the future price of XRP without having the cryptocurrency. In essence, two parties agree to buy or sell XRP at a fixed price on a certain date, liquidating the cash difference according to the value of the asset.
Futures serve both to speculate – allowing up or down – and to cover risks in a volatile market. This development offers additional tools to manage their exposure to XRP No need to guard the asset directly.
The promise of the XRP cash
However, The real focus is on the ETFs in XRP cash, which would buy and maintain the cryptocurrency directly. Companies such as Canary Capital, 21Shares, Bitwise, Grayscale, Franklin Templeton and Coinshares have submitted applications to the United States Stock Exchange and Securities Commission (SEC) to list these products.
Unlike the ETFs of futures or leverage, The ETF al cash would generate a real demand for XRPsince the emitters would need to acquire the cryptocurrency to support the funds. This, in theory, could boost the price and attract institutional investors who seek regulated exhibition to XRP.
The analyst Armando Pantoja underlines the importance of these developments. According to him, lETF of futures legitimize XRP in traditional financial circles and capture the attention of Wall Street.
«Each important cryptocurrency obtained by an ETF of futures eventually obtained an ETF in cash. Bitcoin succeeded in 2024 after its futures in 2021, and XRP follows the same path,» says Pantoja.
He predicts that an ETF in cash could unlock a massive demand, With capital flows exceeding $ 100,000 million.
John Squire, another investor, shares this vision, but with nuances. «An ETF Al Cash Buy XRP Real, which generates a direct demand. This gives greater institutional exposure, recognition in traditional finances and a positive narrative that benefits the price,» he explains.
However, Squire warns that Cash ETFs are not a «miraculous solution» for mass adoption.
A hopeful regulatory change
Optimism also feeds on a change in the regulatory environment. The SEC, under the direction of Paul Atkins, has adopted a more open approach to cryptocurrencies.
Atkins seeks to differentiate itself from the previous administration, perceived as ambiguous and hostile towards innovation. The creation of a working group on cryptocurrencies, led by Hester Peirce, reinforces this dialogue position.
So far from 2025, the SEC has retired litigation against companies such as Ripple, Coinbase, Robinhood, Kraken and Yuga Labs, which generates hopes of a clearer and clearer regulation.
In this context, The chances of approving the XRP cash.. Proshares already requested an ETF in cash in the United States, and a similar background already operates in the Brazilian Stock Exchange.
These precedents They suggest that XRP is gaining ground in regulated markets. However, approval is not an accomplished factand investors should consider the risks of trusting only in expectations.
Why does enthusiasm not guarantee results?
Despite these positive signals, The increase in the price of XRP if the ETFs will be approved in cash is not insured.
ETFs, although facilitating institutional investment, are not a magical formula.
The recent history of cryptocurrencies offers clear lessons about it. For example, ETF al Caé de Ether (ETH), Cryptocurrency of Ethereum, launched in July 2024, have registered tickets of 2.4 billion dollars, but the price of ETH has fallen more than 50% since then, standing 62% below its historical maximum of $ 4,800.
This performance contrasts with the initial success of the Bitcoin Cash ETF, which shows that the results vary according to the asset and market conditions.
There are several obstacles to the success of XRP ETFs
A key factor is the phenomenon of «Buy the rumor, sells the news.» ETF ads usually generate speculative increases in the price, but once the funds debut, investors tend to take profits, which causes corrections.
In the case of XRP, the current enthusiasm could inflate its price, but the materialization of the ETF – or a delay in their approval – could trigger mass sales. Investors must prepare for this possibility and avoid decisions driven by euphoria.
Another obstacle is XRP’s supply dynamics. Ripple Labs maintains a custody system that releases 1,000 million XRP monthly, with a current circulating offer of approximately 58,000 coins. Although part of these XRP is blocked again, The constant entry of new coins to the market could counteract any increase in demand generated by ETFs.
If the funds in charge do not attract significant capital flows, Ripple’s sales pressure could keep the price stagnant or even make it fall.
In addition, it should be taken into account that XRP does not operate in a vacuum. Compete with Bitcoin, Ethereum and other digital assets that also seek to capture institutional attention.
The Bitcoin and Ethereum cash ETFs, approved in 2024, have attracted billions of dollars, consolidating these assets as market leaders.
Instead, XRP faces more risk perceptions due to its regulatory history. If investors prioritize assets with greater adoption, XRP ETFs could attract less capital of the expectedlimiting its impact on the price.
An opportunity with risks
For all this, XRP ETFs represent a step towards the integration of cryptocurrency in traditional markets. Futures in the CME, the ETF leveraged and the possibility of cash opens new doors for investors.
In addition, the regulatory change in the SC suggests a more promising future for XRP. However, investors should avoid falling into the trap of excessive optimism.
Ethereum’s story shows that ETFs do not guarantee price increases. The XRP offer, competition in the cryptocurrency market and macroeconomic factors are obstacles that should not be underestimated.
Prudent investors will diversify their portfolios and avoid decisions based solely on holders. In the world of cryptocurrencies, opportunities are accompanied by risks, and XRP is no exception.
Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author’s opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.