The growing institutional demand for leveraged exposure to digital assets such as XRP is reshaping cryptocurrency-linked investment products. Graniteshares ETF Trust, registered under the U.S. Securities Act of 1933 and the Investment Company Act of 1940, announced in a filing with the U.S. Securities and Exchange Commission (SEC) on Oct. 7 that it plans to launch eight leveraged and inverse exchange-traded funds (ETFs).
The funds are Graniteshares 3x Long and Short Bitcoin Daily ETFs, 3x Long and Short Ether Daily ETFs, 3x Long and Short Solana Daily ETFs, and 3x Long and Short XRP Daily ETFs. Each fund is designed for traders seeking amplified daily returns rather than long-term performance.
The Graniteshares 3x Long XRP Daily ETF seeks to deliver 300% of XRP’s daily percentage price change, whereas the Graniteshares 3x Short XRP Daily ETF targets the inverse, seeking –300% of XRP’s daily percentage price change. The filing explained:
Because the fund seeks daily leverage investment results, it is very different from most other exchange-traded funds.
“It is also riskier than alternatives that do not use a leverage strategy,” the filing added, cautioning that for both funds, the return for investors that invest for periods longer or shorter than a trading day should not be expected to be 300% or –300% of the performance of the underlying asset for the period.
The prospectus further noted that volatility and compounding can cause fund performance to deviate sharply from XRP’s market movements, particularly during high-volatility trading sessions.
The Graniteshares filing highlights the continued appetite among sophisticated investors for high-risk, short-duration crypto strategies. Advocates view such products as expanding access to digital asset derivatives and enhancing liquidity, while critics argue that their complexity and leverage make them unsuitable for most retail participants. If approved, these ETFs would further integrate cryptocurrency-based strategies into mainstream financial markets.
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