Ripple's native cryptocurrency XRP-focused ETF sees asset under management (AUM) increase to $67 million, with the asset's price outperforming its associated company, Ripple.
Cryptocurrency Newsflash: XXRP, the Leveraged XRP ETF, Is Sweeping the Market
(In an unconventional, laid-back tone, let's dive into the world of digital assets)
The freshly minted XXRP, a leveraged exchange-traded fund tracking XRP, is making waves in the crypto universe, with a steady influx of assets.
Think about it, mate! This bad boy, whose ticker is XXRP, has seen its assets swell from zilch to a whopping $67 million in just four weeks. :)
The fund's performance has also beaten Ripple's XRP. It's soared by a whopping 26% since its birth, while XRP has only mustered a 16.4% rise in the same period. 📈
But here's where things get interesting. Despite the free-as-air option of buying the XRP token with no fees, the XXRP ETF's investors pay a premium. With a hefty expense ratio of 1.89%, it's a costlier ride compared to other leveraged ETFs.
To put it into perspective, the popular Direxion Daily Semiconductor Bull 3x Shares ETF, with $9.9 billion in assets, charges a mere 0.75% management fee. And the mighty ProShares UltraPro QQQ ETF, managing a whopping $22 billion, has an expense ratio of only 0.84%. 💸
Institutional Appetite for XXRP
Despite the hefty fees, sustained XXRP inflows point to a strong craving among institutional players for XRP ETFs. They're keeping a keen eye on upcoming XRP ETFs too.
Thehungry Securities and Exchange Commission (SEC) is feasting on no less than 9 XRP ETF proposals. Big names like Bitwise, Canary, 21Shares, WisdomTree, Franklin Templeton, and Grayscale are putting their hat in the ring. JPMorgan, the Wall Street wolf, predicts these ETFs could lure over $8 billion in the first year. That's more than the inflow of Ethereum's eth0% Ethereum ETFs so far! 💰
Data from SoSoValue shows that spot Ethereum ETFs have only attracted roughly $2.5 billion in the first seven months.
XXRP, like a rollercoaster ride, holds high risk but the potential for big rewards. It aims for twice the daily performance of the XRP token. That meansa sharp drop in XRP's price will spell trouble for XXRP ETF investors.
Think about it: the ProShares QQQ ETF, providing leveraged exposure to the Nasdaq 100 Index, has jumped by 261% in the last five years. But its nemesis, the ProShares UltraPro Short QQQ ETF, has plummeted by 98% in the same time frame. So, brace yourself for the XXRP rollercoaster! 🎢
In Other Crypto News: Trust in Crypto Stilled Shaken by Mantra Collapse, but XRP ETF Ignites Institutional Optimism, Experts Say
(Enrichment Data)
Current Status of XRP ETF Approval Process:
The Securities and Exchange Commission (SEC) has stretched its review timeline for various XRP ETF applications. For instance, the decision on Franklin Templeton's XRP ETF was postponed until June 17, 2025[4]. Additionally, the SEC is examining numerous crypto ETF proposals, with decisions potentially extending as late as October 18, 2025[3].
While certain XRP ETFs, such as those from ProShares, have received the green light for launch on April 30, 2025, these are futures-based rather than spot ETFs[5]. They incorporate the ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, and ProShares Short XRP ETF, which give investors leveraged and inverse exposure to XRP price movements via futures contracts[5].
Projected Inflows for XRP ETFs:
Estimating the actual inflows for XRP ETFs precisely is challenging due to market volatility and regulatory uncertainties. However, the launch of futures-based ETFs and the pending review of spot ETFs hint at growing institutional interest in XRP. That's evident in XRP's recent price explosion and substantial market capitalization of $127 billion[5].
The anticipation around spot ETF approvals could further pump up interest and inflows once approved. Analysts anticipate a slew of altcoin ETFs, including XRP, could get approval in the coming months, stirring up increased investment activity[1]. However, the final inflows will depend on regulatory verdicts, market sentiment, and investor interest in these financial products.
- The XXRP fund, a leveraged XRP ETF, is surging in the crypto market, attracting substantial assets and outperforming XRP itself.
- The XXRP ETF's ticker is XXRP, and it's seen its assets swell from nothing to $67 million in just four weeks.
- Interestingly, while buying the XRP token comes with no fees, investors in the XXRP ETF pay a premium, with an expense ratio of 1.89%.
- Despite the hefty fees, institutional investors seem to be in high demand for XRP ETFs, as demonstrated by the influx of assets into the XXRP ETF.
- The Securities and Exchange Commission (SEC) is currently reviewing no fewer than 9 XRP ETF proposals from big names like Bitwise, WisdomTree, and JPMorgan.
- If approved, these XRP ETFs could attract over $8 billion in the first year, surpassing the inflow of Ethereum's Ethereum ETFs so far.
- XXRP aims for twice the daily performance of XRP, but its high-risk nature means a sharp drop in XRP's price could lead to trouble for XXRP ETF investors.
