ProShares XRP ETF Rumors Are Causing Confusion in the Market – What We Know So Far

Despite rumors that the SEC has approved a Spot XRP ETF, this is incorrect. The only new development related to ProShares' XRP Leveraged and Short-Term Futures Contracts will begin trading on 04/30.

It is unclear how these misleading statements have affected XRP's price today, but they have caused significant buzz. False cryptocurrency news is becoming increasingly common recently, and this could negatively impact investor confidence.

Spot XRP ETF in the US Still Does Not Exist

The cryptocurrency industry is filled with excitement about an XRP ETF, especially since an ETF has started trading in Brazil last week.

However, there are no shortage of overly enthusiastic people who can incite and spread optimistic rumors. ProShares' new Futures Contract ETF has indeed been approved, but this is unrelated to a Spot ETF:

Bitcoin, the first cryptocurrency-focused ETF, achieved a futures contract ETF before a spot ETF. In some ways, the SEC's approval of an XRP Futures Contract ETF is a positive sign.

The Commission has an upcoming deadline to reject or confirm these proposals, and experts believe the likelihood of approval is very high. Unfortunately, that does not change today's reality.

XRP price has fluctuated in the past 24 hours, with significant drops. It would be unfair to suggest that ETF hype is the source of all XRP volatility; some situations may be contributing to this situation.

However, recent rumors have had a clear impact on the cryptocurrency market, even when they are completely untrue. These confusing statements may have affected XRP.

Confusion does not help build a stable industry. Even if misleading ETF rumors temporarily boost XRP's performance, this is not a sign of long-term ecosystem health. Misinformation can cause significant damage to public trust, especially for small retail investors.

For example, Eleanor Terrett commented on these rumors, saying she is "really sick of all the rude keyboard warriors in this community."

It seems she received online hostility while trying to clarify news decisions despite being correct and a reliable source for cryptocurrency reporting.

Spot ETF and Futures ETF – What's the Difference?

Spot ETFs directly hold XRP tokens, providing investors with access to actual cryptocurrency. These ETFs aim to reflect the real market price of XRP. Thus, there is a direct correlation between the fund's value and the spot price of the token.

Currently, spot XRP ETFs are not approved in the US. Registration applications from companies like Grayscale and Bitwise are under SEC review.

Meanwhile, leveraged futures contract ETFs do not directly hold XRP. Instead, they invest in futures contracts predicting XRP's future price.

Due to daily leverage resets, these ETFs can experience significant volatility and may not be suitable for long-term holding.

Even if these XRP ETF rumors originated from a genuine misunderstanding, they remain dangerous. In the future, the community needs to carefully verify sources and act in good faith to maintain public trust.