GraniteShares, a provider of exchange-traded funds (ETFs), has filed to launch an ETF that offers exposure to the Ripple-linked XRP token with 3X leverage (long and short).
On top of that, it will offer similar products for such cryptocurrencies as Ethereum (ETH), Bitcoin (BTC), and Solana (SOL).
The ETF will offer a return of roughly 300% of the daily price of the asset it tracks. For instance, if XRP rises by 1% in a single day, the product should spike by approximately 3% (the same applies to price declines)
Like other leveraged ETFs, it is designed to be a short-term trading tool since the ETF's performance gets reset on a daily basis.
Hence, traders are exposed to the compounding risk given that the ETF's value can be swiftly eroded over time.
Other XRP ETFs
There are already some leveraged XRP ETFs that offer 2X exposure to the token from such issuers as Teucrium, Volatility Shares, and ProShares.
Meanwhile, traditional spot XRP ETF proposals are currently stuck due to the ongoing U.S. government shutdown that has affected the Securities and Exchange Commission's ability to approve the launches of such ETFs.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team