Global ETP issuer GraniteShares has filed with the U.S. SEC, seeking approval to launch 3x leveraged ETFs tied to XRP.
In an October 7 filing, the company seeks to introduce two new leveraged XRP ETFs, dubbed the GraniteShares 3x Long XRP Daily ETF and the GraniteShares 3x Short XRP Daily ETF. Notably, the products will provide investors with exposure to three times the daily performance of XRP, potentially magnifying losses and gains by a factor of three.
To put this into perspective, if the price of XRP drops by 33.3% in a single day, investors in the GraniteShares 3x Long XRP ETF could lose their entire investment. Conversely, investors in the 3x Short XRP ETF could lose everything if the price rises by 33.3%.
Potential Launch Date
In addition to XRP, GraniteShares is also seeking to offer similar offerings for other established tokens, such as Bitcoin, Ethereum, and Solana. The filing is a work in progress, with several details, including the ticker symbol and management fees of the funds, still missing.
Nonetheless, the ETP issuer disclosed that the products could commence trading as early as 75 days from the October 7 filing date, pending regulatory approval. This timeline indicates a potential launch around December 21, 2025.
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GraniteShares crypto ETFs
Similar Leveraged XRP ETFs
If approved, the GraniteShares leveraged XRP ETFs would join a growing lineup of similar products from Teucrium, Volatility Shares, and ProShares that have already launched in the United States.
Despite being leveraged products, these ETFs have garnered substantial investor interest. This is evident in the success of Teucrium’s 2x Long Daily XRP ETF (XXRP), which has accumulated $421.1 million in assets under management (AUM) since its debut in April.
Anticipation for Spot XRP ETFs Accelerates
However, investors appear more interested in the multiple spot XRP ETF applications currently on the SEC’s desk. The commission is expected to issue its final decision on some of these products, including the Bitwise XRP ETF, later this month.
However, the ongoing U.S. government shutdown, which has affected the SEC’s operations, could delay the potential launch of spot XRP ETFs. A similar delay occurred earlier this month when the regulator missed the deadline for its final decision on Canary Capital’s proposed Litecoin ETF.
Meanwhile, analysts suggest that the initial timelines for ETF approvals have become irrelevant following the SEC’s recent adoption of the Generic Listing Standards framework. The new framework provides the regulator with the flexibility to approve or deny crypto ETF applications at any time, regardless of previously established deadlines.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
