Investor enthusiasm for XRP is leading to the creation of new regulated financial products that provide exposure to its price movements. On July 15, asset manager ProShares announced the launch of the ProShares Ultra XRP ETF (UXRP) and the ProShares Ultra Solana ETF (SLON), two leveraged exchange-traded funds (ETFs) designed to deliver 2x the daily performance of XRP and Solana, respectively. This move significantly expands institutional access to these leading cryptocurrencies within traditional financial frameworks.
UXRP: Amplified Exposure Through Futures
Rather than holding XRP directly, the ProShares Ultra XRP ETF (UXRP) utilises futures contracts and other derivatives to replicate twice the daily performance of the Bloomberg XRP Index. This futures-based structure allows the fund to gain exposure to XRP’s price movements without directly holding the underlying token, which has historically facilitated faster regulatory clearance in the U.S. market.
The launch of UXRP follows a key regulatory step taken on July 14, when NYSE Arca certified its approval for the listing and registration of the ProShares Ultra XRP ETF under the Exchange Act of 1934. Designed primarily for traders seeking short-term directional plays, UXRP offers investors a way to capitalise on XRP’s volatility without the complexities of direct token custody. While daily-reset leverage introduces additional risk, XRP’s growing use in cross-border payments continues to strengthen its long-term investment case.
Expanding ProShares’ Crypto ETF Lineup
ProShares, a leading provider of leveraged and inverse funds with over $85 billion in assets under management, is significantly expanding its suite of crypto-linked products with this launch. UXRP joins an existing lineup that includes the U.S. bitcoin-linked fund (BITO), an ether-linked ETF (EETH), and short-position products like BITI and SETH.
Michael L. Sapir, CEO of ProShares, commented on the new offerings: “As cryptocurrencies become more widely adopted, investors are turning to platforms like Solana and XRP for exposure to next-generation blockchain technologies. SLON and UXRP provide the opportunity to target leveraged exposure to Solana and XRP, allowing investors to overcome the challenges of acquiring leveraged exposure to these cryptocurrencies.” This strategic expansion reflects ProShares’ commitment to providing innovative solutions that allow investors to manage risk and enhance returns within the evolving digital asset landscape. The successful debut of UXRP has also led to a significant increase in the odds of a full spot XRP ETF approval, with Polymarket data showing odds surging past 86% following the launch.
