ProShares Launches XRP ETFs

CRYPTO
ProShares Launches XRP ETFs

ProShares is set to launch three new XRP-tracked ETFs after receiving approval from the SEC, marking a major milestone for XRP and the broader crypto ETF market. The new products include the Ultra XRP ETF (offering 2x leverage), the Short XRP ETF, and the Ultra Short XRP ETF (providing -2x leverage). While these leveraged ETFs are moving forward, ProShares has not yet launched a spot XRP ETF, although the SEC has acknowledged multiple applications, including one from Grayscale with a key May 22 deadline.

This wave of XRP ETFs follows the resolution of Ripple’s lengthy legal battle with the SEC in March, removing significant regulatory barriers. The launch signals growing institutional confidence in XRP. It also comes shortly after Teucrium's 2x XRP ETF debuted with over $5 million in first-day volume, and as the CME Group prepares to add XRP futures next month. These developments position XRP for wider market integration.

FINANCE
Recession Risk Rising by 2025

Apollo Global Management warns that stagflation — the toxic mix of slow growth and rising inflation — could soon grip the U.S. economy. In a new report coauthored by chief economist Torsten Slok, Apollo predicts that Trump's newly announced tariffs could spark a recession by summer 2025. The chain reaction has already begun: shipping from China is slowing, which could sharply reduce store inventories, depress retail and trucking demand, and trigger layoffs by late May.

Trade wars, the report notes, create stagflation shocks by raising prices and disrupting supply chains. Warning signs are already flashing: CEO confidence has plunged, with only 49% expecting revenue growth in 2025, down from 84% at the year's start. Consumer sentiment is cratering too, with record numbers making only minimum credit card payments and rising fears of unemployment. The University of Michigan’s Consumer Sentiment Index fell sharply in April, signaling deepening economic anxiety.

TECH
Big Tech Earnings Face Major Test

Big Tech earnings are arriving at a tense moment. Three months ago, markets were focused on AI innovation; now, fears of a tariff-driven recession dominate. Microsoft, Apple, Meta, and Amazon will report earnings this week, with Wall Street still expecting 15% profit growth from the Magnificent Seven in 2025, despite rising trade tensions.

Markets are volatile — Tesla posted a weak quarter, Alphabet beat estimates but stayed cautious, and the Bloomberg Magnificent 7 Index remains down 15% for the year. Investors are closely watching not just profits, but spending plans. Tech giants like Microsoft and Amazon are projected to spend around $300 billion this year, though data center pauses hint at reevaluations.

Lower valuations are making these tech giants more attractive, but uncertainty lingers. Weak earnings or gloomy outlooks could trigger further selloffs, though strong balance sheets still position Big Tech to weather economic storms better than most. Dip-buyers are watching carefully.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.