Volatility Shares has filed for a 5× leveraged XRP ETF, signaling a growing appetite for high-octane cryptocurrency investment products.
The firm is also exploring leveraged ETFs for Bitcoin and Ethereum, positioning itself to capitalize on surging interest in digital assets among retail and institutional investors.
Leveraged ETFs amplify the daily performance of an underlying asset, in this case, XRP, by five times. If XRP rises by 1% in a day, the ETF could gain 5%, and conversely, losses are equally magnified.
While such products are designed for short-term traders seeking aggressive exposure, they carry significantly higher risk compared to traditional ETFs.
Author's summary: Volatility Shares files for 5× XRP ETF.