CryptoCorner

On April 30, 2025, ProShares will introduce three exchange-traded funds (ETFs) centered on XRP, following approval from the SEC (Securities and Exchange Commission).

This launch represents a major step toward integrating cryptocurrency into traditional financial systems.

The ETFs—ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, and ProShares Short XRP ETF—will provide investors with leveraged and inverse exposure to XRP via futures contracts rather than direct ownership. Coming on the heels of Ripple’s legal settlement with the SEC, this development may enhance XRP’s adoption, though the leveraged nature of these ETFs introduces significant risks for investors.

Key Points

• ETF Types: Leveraged (2x) and inverse (-1x, -2x) ETFs based on XRP futures.
• Launch Date: April 30, 2025.
• Regulatory Context: Enabled by Ripple’s resolution of SEC legal issues.
• Market Impact: Potential to boost liquidity, though leverage may increase volatility.
• Investor Caution: High-risk products due to amplification of gains and losses.

What Is XRP?

XRP is a digital currency that powers quick and low-cost cross-border payments. Unlike Bitcoin, which relies on mining and a decentralized network, XRP uses a special consensus mechanism. This means transactions are processed faster—often in just a few seconds—and use less energy. It’s built to help banks and financial institutions move money across borders more efficiently.

How Does It Work?

XRP acts as a bridge currency in Ripple’s payment network. Imagine you need to send US dollars (USD) to someone who wants euros (EUR). Instead of a slow, expensive bank transfer, XRP can be used as an intermediary: USD converts to XRP, then XRP converts to EUR. This process cuts down both time and fees, making it a favorite for international payments.

Understanding the ProShares XRP ETFs

ProShares, a prominent ETF provider, is rolling out three distinct XRP-focused ETFs:

• ProShares UltraShort XRP ETF: Targets twice the inverse (-2x) daily performance of XRP futures.
• ProShares Ultra XRP ETF: Aims for twice (2x) the daily performance of XRP futures.
• ProShares Short XRP ETF: Seeks inverse (-1x) daily performance of XRP futures.

These ETFs rely on futures contracts and swaps rather than holding XRP directly, aligning with regulatory standards and broadening access for traditional investors. More details can be found on the ProShares website.

What Is ProShares?

ProShares is a company in the United States that creates ETFs (Exchange-Traded Funds).
These are special investment products that you can buy and sell just like stocks.

ProShares makes different types of ETFs – some go up when the market goes up (called “Ultra”), and some go up when the market goes down (called “UltraShort”).
They also offer ETFs focused on specific sectors like technology, finance, or industry.

What are ETFs?

An Exchange-Traded Fund (ETF) is a type of investment fund traded on stock exchanges, similar to stocks, holding assets like stocks, bonds, commodities, or cryptocurrency futures. For cryptocurrencies, ETFs provide exposure without direct ownership, addressing regulatory and custody challenges.

Significance of the Launch

The introduction of these ETFs carries several important implications:

• Regulatory Clarity: The SEC’s approval follows Ripple’s legal settlement, removing key obstacles for XRP-related financial products.
• Institutional Interest: These ETFs may draw institutional investors, enhancing XRP’s market liquidity.
• Market Precedent: The success of Teucrium’s prior XRP ETF launch suggests strong demand.

Market Reactions and Sentiment

The crypto community has responded positively, particularly on social media platforms like X.

This enthusiasm highlights expectations of wider cryptocurrency adoption, tempered by awareness of the risks tied to leveraged ETFs.

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Risks and Considerations

Leveraged ETFs come with inherent risks that investors must carefully weigh:

• Volatility: Cryptocurrency markets are highly volatile, and leverage can magnify losses significantly.
• Daily Rebalancing: These ETFs are designed for short-term trading, not long-term investment, due to their daily performance objectives.

Prospective investors are encouraged to seek advice from financial professionals before committing funds.

Conclusion

The debut of ProShares’ XRP ETFs on April 30, 2025, could reshape the cryptocurrency investment landscape, offering innovative options for exposure to XRP while introducing elevated risks. As the market continues to mature, these ETFs may signal further advancements in crypto finance, though prudence remains essential for investors.

Disclaimer

This article is intended for informational purposes only. Cryptocurrency investments involve substantial risks. Please consult a financial advisor before making investment decisions.

ALSO READ – Crypto Trading – A Complete Master Guide for Beginners

If you are new to the world of money, finance, or cryptocurrency, you might have come across the terms USD and USDT. They sound similar, but they are actually very different. In this article, we will explain both in simple words so that even a complete beginner can understand.

What is USD?

USD (United States Dollar) is the official currency of the United States. It is one of the most powerful and widely used currencies in the world.

Key Facts About USD:

• Issued by the U.S. government and regulated by the Federal Reserve.
• Used for buying goods and services in the U.S. and other countries.
• Exists in physical form (paper notes and coins) and digital form (bank transfers, online payments).
• Value changes based on the economy, inflation, and global events.

Example:
If you go to a shop in the U.S. and buy a coffee for $5, you are using USD.

What is USDT?

USDT (Tether) is a type of digital currency called a stablecoin. It is a cryptocurrency that is pegged (linked) to the value of the USD. This means 1 USDT = 1 USD (most of the time).

Key Facts About USDT:

• Created by a company called Tether Limited.
• Built on blockchain technology, like Bitcoin and Ethereum.
• Can be stored in a digital wallet and used for online transactions.
• Used mainly for cryptocurrency trading and international transactions.
• Unlike USD, it does not exist as physical money.

Example:
If you are using a cryptocurrency exchange and want to keep your money stable without withdrawing it to your bank, you can convert your Bitcoin into USDT instead of USD.

Key Differences Between USD and USDT

What are the key advantages of using USDT versus USD for international payments?

Even though USD is the real currency, many people prefer using USDT for certain reasons:

1. Faster Transactions – Sending USDT across borders is much faster than sending USD through banks. Crypto transactions take minutes, while bank transfers can take days.
2. No Bank Required – USDT allows people to store and transfer money without using traditional banks.
3. Stable Value in Crypto Trading – When crypto traders want to protect their money from Bitcoin’s ups and downs, they convert their assets into USDT instead of withdrawing into USD.
4. Lower Fees – Moving USDT from one crypto exchange to another is usually cheaper than converting USD through banks.

Also Read – Understanding the Basics of Buying, Selling, and Stop Hunting in Financial Markets

Can USDT Replace USD?

No, USDT cannot replace USD because:

• It is not a legal currency for daily life (you cannot buy groceries with USDT in most places).
• It depends on the company Tether Limited, which is not a government entity.
• It is mainly used within the cryptocurrency world.

However, it is very useful for crypto traders and investors who want a digital alternative to USD without actually holding cash.

What are the main disadvantages of using USDT instead of USD for international payments?

While USDT is convenient, there are some risks:

• Not Fully Transparent – Tether Limited has faced questions about whether it actually holds enough USD reserves to back all the USDT it issues.

• Regulation Issues – Governments are still deciding how to regulate stablecoins, which could affect how USDT is used in the future.

• Exchange Risks – If a crypto exchange gets hacked or shuts down, USDT holders might lose access to their funds.

We have all heard about trading cryptocurrency. Crypto trading is becoming a hot topic, and many people aspire to become traders. In this article, we will cover every important aspect of crypto trading that a beginner must know. We will learn about crypto trading from scratch. So, let’s begin the learning!

What is cryptocurrency?

Cryptocurrency, or simply crypto, is a type of digital money. Unlike regular currencies like dollars or rupees, it is not controlled by any central authority like a bank or government. This makes it different from the money you use every day.

Cryptos use a technology called cryptography. This technology secures transactions and helps control the creation of new coins.

Each transaction is verified and recorded in a digital ledger called the blockchain. The blockchain is like a public record that everyone can see, but no one can change.

Examples of Cryptocurrency

1. Bitcoin (BTC): Bitcoin is the first and most well-known cryptocurrency. It was created in 2009 by an anonymous person or group called Satoshi Nakamoto. Bitcoin is often called “digital gold” because it was the first to introduce the idea of decentralized money.
2. Ethereum (ETH): Ethereum is the second-largest cryptocurrency by market cap. It is more than just a digital currency; it is also a platform that allows developers to build decentralized applications (dApps) using smart contracts.
3. Ripple (XRP): Ripple is both a platform and a cryptocurrency. It is mainly used to enable fast, low-cost international money transfers. Banks and payment providers use Ripple’s technology to send funds across borders.
4. Litecoin (LTC): Created by Charlie Lee in 2011, Litecoin is often referred to as the “silver” to Bitcoin’s “gold.” It is similar to Bitcoin but has faster transaction times and a different mining algorithm.
5. Binance Coin (BNB): Binance Coin is the native currency of the Binance exchange, one of the largest crypto exchanges in the world. BNB is used to pay for transactions on the Binance platform and is also traded like other cryptocurrencies.
6. Cardano (ADA): Cardano is a blockchain platform with its cryptocurrency called ADA. It focuses on sustainability and scalability, aiming to solve some of the issues faced by older blockchains like Ethereum.
7. Dogecoin (DOGE): Originally started as a joke in 2013, Dogecoin has gained popularity due to its community and support from high-profile individuals like Elon Musk. It is known for its Shiba Inu dog logo.
8. Polkadot (DOT): Polkadot is a blockchain platform that allows different blockchains to interconnect. Its cryptocurrency, DOT, is used for governance and operations on the network.

Other examples of cryptocurrencies include Solana (SOL), which is known for its fast transaction speeds and low fees; Chainlink (LINK), a platform that connects smart contracts to real-world data; Stellar (XLM), designed for quick cross-border payments; Monero (XMR), a privacy-focused cryptocurrency that hides transaction details; Tether (USDT), a stablecoin that is tied to the US dollar to maintain a stable value; Avalanche (AVAX), a platform for building decentralized applications and financial products; Shiba Inu (SHIB), which gained popularity as a meme coin like Dogecoin; and Polygon (MATIC), which is used for scaling and improving Ethereum’s capabilities. Each of these cryptocurrencies has different functions and features in the crypto world.

Read more about Bitcoin here

What is crypto trading?

Crypto trading means buying and selling cryptocurrencies to make a profit. Similar to stock trading, traders try to buy crypto at a lower price and sell it at a higher price. Or, they try to short sell crypto at higher price and buy it at lower price.

How crypto trading works?

When it comes to crypto trading, most of the action happens in the derivatives market. This means traders often deal with futures and options based on cryptocurrency prices, rather than directly owning the coins. Let’s explore both options:

1. Direct Investment in Cryptocurrencies

You can invest directly in cryptocurrencies like Bitcoin or Ethereum. However, for many investors, the cost of buying a whole unit of these cryptocurrencies can be quite high. For example, one Bitcoin can be very expensive, making it difficult for small investors to buy even a single unit. Fortunately, most exchanges allow you to buy fractional amounts of cryptocurrency, meaning you don’t need to purchase a full Bitcoin or Ethereum to start investing.

2. Trading Cryptocurrencies through Derivatives

For those who may not want to buy cryptocurrency directly or have limited funds, trading through derivatives is an alternative. Derivative products like futures and options allow you to speculate on the price movements of cryptocurrencies without actually owning them. These products also offer leverage, meaning you can control a larger position with a smaller amount of capital. This makes derivatives appealing to traders who want to benefit from price changes without having to buy the asset itself.

3. Why Traders Choose Derivatives

Many traders prefer the derivatives market because it offers more flexibility, especially for those who want to make short-term gains. Additionally, since the initial investment can be smaller compared to buying the actual cryptocurrency, derivatives trading opens up opportunities for more people to participate in the market.

How can you trade crypto from India?

To trade in cryptocurrency, you need a broker. I mean, a good broker whom you can trust to a great extent. It’s better if the broker is somehow regulated by a government authority. This factor ensures the safety of your investment to some extent.

In India, Delta Exchange is one such broker you can trust for cryptocurrency trading. This broker is registered with the FIU (Financial Intelligence Unit) in India.

Open your account with Delta Exchange through this link and get access to our premium crypto trading Telegram channel. You will also receive a free crypto trading ebook to simplify your trading journey.