On October 8, GraniteShares officially filed with U.S. regulators to launch a leveraged exchange-traded fund (ETF) focused on XRP, featuring both 3x long and 3x short exposure options. The proposed fund is designed to provide amplified returns for traders seeking to leverage directional price movements of XRP through a regulated investment vehicle. This filing follows successful launches of similar 3x leveraged products for Bitcoin, Ethereum and Solana, signalling growing demand for sophisticated crypto derivatives among institutional and retail investors.
The long version of the fund aims to deliver three times the daily return of XRP, enabling investors to magnify gains in bullish market conditions. Conversely, the short version targets inverse exposure, offering three times the opposite of daily XRP returns. Both products will employ daily rebalancing mechanisms to maintain targeted leverage ratios, addressing the inherent decay associated with leveraged strategies over extended holding periods.
GraniteShares’ filing includes detailed disclosures on portfolio construction, collateral management and risk controls. The fund intends to hold physical XRP in custody through a regulated digital asset custodian, with full collateral backing to mitigate counterparty and market risk. Additionally, GraniteShares has outlined procedures for addressing significant price gaps and market halt scenarios, emphasising transparency and investor protection mechanisms aligned with SEC expectations.
The venture into leveraged XRP ETFs underlines a broader trend of institutional product development in the digital asset space. Over the past year, regulatory approval of spot crypto ETFs has fueled substantial inflows, and leveraged variants now emerge to cater to traders seeking enhanced directional strategies. Market analysts anticipate that approval of GraniteShares’ filing could pave the way for further innovation, including leveraged ETFs for additional large-cap tokens. Continued institutional engagement is expected to deepen liquidity and market sophistication across the crypto ecosystem.
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