XRP Gets 2x Daily ETF Boost in ProShares Launch

XRP has officially entered the leveraged ETF space with ProShares introducing a new financial product aimed at doubling daily returns for XRP futures. ProShares, known for pioneering cryptocurrency-based exchange-traded funds (ETFs), has expanded its crypto portfolio by launching two leveraged ETFs that offer 2x daily performance exposure to both Solana and XRP.

Unveiled on July 15, the two new ETFs – Ultra Solana ETF (SLON) and Ultra XRP ETF (UXRP) – seek to generate double the daily returns of their respective digital assets. However, rather than investing in the actual cryptocurrencies, these ETFs are built on futures contracts. This aligns with ProShares’ established model, which also powers their flagship Bitcoin and Ethereum ETFs.

ProShares CEO Michael Sapir emphasized the strategic importance of expanding exposure to assets like XRP and Solana, citing their growing reputation for high-speed transaction capabilities and widespread decentralized application (dApp) development. “Our goal,” Sapir noted, “is to simplify access for traders looking for leveraged exposure without the complexities of holding crypto directly or using margin. This product brings that capability to a regulated ETF format.”

The launch of the XRP-focused ETF adds another innovative dimension to ProShares’ ETF lineup, which already includes pioneering products like Bitcoin-linked BITO, and the inverse Ethereum ETF, SETH. As of now, ProShares manages over $1.5 billion in cryptocurrency-linked ETFs and mutual funds.

Unlike owning XRP tokens outright, the UXRP ETF tracks cash-settled XRP futures traded on regulated platforms. This is part of ProShares’ ongoing strategy to avoid direct custody of digital assets due to ongoing regulatory uncertainties and risk mitigation considerations. These futures-based ETFs allow ProShares to abide by existing compliance structures while bringing exposure to high-demand crypto assets.

Importantly, investors should understand that daily leveraged ETFs like UXRP are primarily meant for sophisticated traders. These funds undergo daily resets of their exposure levels, meaning that results over longer periods can diverge significantly from the expected multiple of returns. For instance, during sharp but brief movements in XRP’s value, gains can compound rapidly—but reversals can lead to equally intense losses.

To mitigate misunderstanding, ProShares spelled out in its prospectus that the new ETFs are best suited for traders who can properly handle the volatility and mechanics behind leveraged investing. Management fees for SLON and UXRP are consistent with earlier ProShares offerings, ensuring product continuity across their crypto ETF range.

With the launch of these leveraged ETFs, XRP joins an elite group of cryptocurrencies that have received such financial instruments. While other firms have submitted filings for similar structures, approval remains limited mainly to futures-based ETFs, as direct custody assets struggle with regulatory acceptance.

This expansion comes at a time when demand for both XRP and Solana continues to rise as alternative blockchain infrastructures for payments and decentralized applications. By aligning their investment instruments with market interest and investor sophistication, ProShares is paving a clearer route for traditional traders to dip into the world of high-volatility digital assets like XRP.

The success of previous products such as Ethereum‘s long and short futures ETFs (EETH and SETH) has strengthened ProShares’ trust in the 2x leverage format. The inclusion of XRP and Solana (SOL) makes up a robust crypto ETF base of 12 funds, strategically balancing exposure and risk.

Echoing the firm’s cautious approach, ProShares reassured that it will not be holding digital currencies directly. Instead, all positions are mirrored through cash-settled futures on federally regulated exchanges—underpinning the company’s long-standing model designed to safeguard investors and comply with market standards.

As investor appetite continues to evolve and regulatory frameworks mature, ProShares remains attentive to developing more leveraged and inverse ETFs. Such prospects could potentially extend to additional coins pending greater clarity from regulators.

Related: XRP Price: $12M Max Pain for Bears

Through the addition of XRP and Solana, ProShares shows its commitment to offering innovative tools to traditional finance participants looking to venture into crypto without navigating the intricacies of token custody or volatility on their own.