- SEC approved the initial XRP futures ETF, which will debut on April 30, 2025.
- XRP’s price increased by 7.5%, hitting $2.34 and a market cap of $136.97B.
- Ripple remains above the 200-day EMA, signaling long-term support despite short-term bearish trend.
The U.S. Securities and Exchange Commission (SEC) has formally authorized the world’s first XRP futures ETF by ProShares. Scheduled to launch on April 30, 2025, the ETF tracks futures contracts, not spot prices, but still signals growing mainstream acceptance for Ripple.
Following the announcement, the price of XRP increased by 7.5% over the last 24 hours to $2.34 and had a market cap of over $136.97B. While XRP shot up, the vast majority of the top cryptos fell modestly, and this positive divergence illustrates just how significant the ETF approval has had on the market mood of XRP.
ETF Approval Coincides with Ripple’s SEC Progress
The approval of the ETF comes as Ripple made significant headway in its long-running fight against the SEC. Changes in leadership within the government, most notably Trump’s victory and the appointment of Paul Atkins as SEC Chairman, created a more cryptocurrency-friendly environment. The crypto industry was previously stifled and required enhanced regulatory clarity according to the admission by Atkins.
Ripple’s woes started back in 2020 when the SEC charged that XRP was being sold as a security. In July of 2023, Ripple faced a partial victory when a judge decided that Ripple was not a security when sold on secondary exchanges. Institutional sales were penalized by a $125 million fine nonetheless.
Ripple CEO Brad Garlinghouse revealed on March 19 that the SEC had agreed to withdraw its appeal subject to internal clearance. On April 10, the two firms filed a joint motion to halt proceedings and deliberate on terms of settlement. Specialists opined the resolution of the case could rewrite the regulations governing the classification of cryptocurrencies under U.S. law.
XRP Price Action: Breakout Above $2.25
Investors initially questioned why only a futures ETF received approval. However, analysts highlight that futures ETFs typically lead the spot ETFs as was the case before for Bitcoin and Ethereum. The futures products allow large investors to legally and securely gain exposure to Ripple’s price movements, regardless of market direction.
Ripple trades below the 50-day Exponential Moving Average (EMA) but above the 200-day EMA, indicating a bearish short-term trend but long-term support.
A break above the 50-day EMA could propel a retest of the March 19 high at $2.5925. Breaking above $2.5925 could set the stage for the January 16 high of $3.3999.
On the other hand, XRP’s price dipped below the low of April 21 at $2.0596 could challenge the 200-day EMA, but started recovery on April 23. The XRP regained momentum later on, rebounding and hitting $2.2727 on 28 April 2025.
Read More: ProShares XRP Futures ETFs Set for April 30 Launch in U.S.