In recent weeks, a noteworthy development has sparked new excitement among cryptocurrency enthusiasts as a novel proposal for an exchange-traded fund (ETF) focused on XRP has emerged. This initiative, put forth by GraniteShares, entails a plan for a 3× leveraged XRP ETF aimed at magnifying the cryptocurrency’s daily returns.
This fund may not fulfill the long-anticipated demand for Spot XRP ETFs, but its introduction represents a significant advancement toward broader institutional acceptance of XRP in the American market.
GraniteShares Unveils 3× Leveraged XRP ETF Initiative
Recent documents with the SEC reveal GraniteShares’ intention to launch a 3× leveraged XRP ETF. The concept is straightforward: if XRP’s value increases by 1% within a day, the ETF aims to reflect a corresponding 3% rise. Conversely, should there be a decline, the ETF would also mirror that loss in a magnified manner. Such leveraged products tend to attract traders focused on immediate price fluctuations rather than long-term investments.
Interestingly, the filing indicated plans for similar leveraged vehicles tied to other prominent cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). What distinguishes this proposal is that it represents one of the initial efforts to create a leveraged ETF around XRP following the recent regulatory clarifications regarding the token in the United States.
These leveraged funds are designed to reset on a daily basis. GraniteShares’ pursuit of an XRP-related ETF indicates a gradual re-emergence of interest from institutional players on Wall Street. If the proposal gains approval, the ETFs could launch as early as December 2025, aligning with existing ETF options like ProShares Ultra XRP ETF, Teucrium, and Volatility Shares that provide 2x daily exposure through futures contracts.
Positive Developments Pivotal for XRP
Recent trends indicate that the price trajectory of XRP has been quite subdued, especially when compared to Bitcoin and Ethereum. Analyzing recent blockchain data, it has become evident that sentiment surrounding XRP has deteriorated significantly, reaching a six-month peak of negativity, mirroring traders’ concerns regarding its stagnant performance vis-à-vis other leading cryptocurrencies.
The muted actions of XRP can primarily be linked to the lack of impactful news that could bolster traders’ confidence. Bitcoin and Ethereum, on the other hand, have recently attracted robust institutional investment, heightening their visibility and appeal. Consequently, the introduction of the GraniteShares ETF proposal arrives at a critical juncture, potentially stirring renewed optimism and signaling to major investors that interest in XRP-related products remains strong.
While the leveraged ETF proposal is a positive sign, it does not carry the same weight as a Spot ETF. The ongoing discussions regarding XRP have largely centered on the anticipated approval of Spot ETFs. Analysts have consistently highlighted that such an approval could pave the way for XRP’s next significant upward movement. Unfortunately, the current governmental negotiations in the U.S. continue to delay the approval process for these desired financial products.
As of the latest update, XRP is trading at approximately $2.83, reflecting a 1% decrease in the last 24 hours.
