NYSE Arca has approved the launch of ProShares Ultra XRP ETF, which offers double daily returns through futures contracts.
Launch of ProShares Ultra XRP ETF
ProShares, known for pioneering the first Bitcoin futures ETF, is launching the ProShares Ultra XRP ETF (UXRP). This product aims to deliver twice the daily return of the XRP index using futures contracts.
Expected Volatility in XRP Market
The arrival of the new ETF highlights growing interest in leveraged cryptocurrency ETFs, which may lead to increased volatility in the XRP market. "XRP is a relatively new asset class and the market for XRP is subject to rapid changes and uncertainty. It is subject to unique and substantial risks such as rapid price swings and lack of liquidity," notes ProShares Trust in its financial document.
XRP Market Reacts to New ETF
XRP is currently valued at $2.92, experiencing a 2.87% reduction in the past 24 hours, with a market cap of approximately $172.50 billion. In the last 90 days, the asset has seen a 40.14% increase. Coincu's research team suggests that the listing of the Ultra XRP ETF may result in enhanced market engagements and price fluctuations.
The approval of the Ultra XRP ETF may impact XRP market dynamics, increasing volatility and attracting interest in cryptocurrency assets.
