The post Ripple’s XRP 5x Leveraged ETF Filing Raises Eyebrows as SEC Yet to Approve 3x Crypto Products ⋆ ZyCrypto appeared on BitcoinEthereumNews.com. Advertisement &nbsp &nbsp A new wave of highly leveraged exchange-traded funds (ETFs) could soon storm the stock and crypto markets if approved. U.S.-based issuer Volatility Shares has filed with the Securities and Exchange Commission (SEC) to launch an ambitious lineup of 3x and 5x ETFs tied to individual stocks and cryptocurrencies, including Bitcoin, Ether, Solana, and XRP. According to Bloomberg ETF analyst Eric Balchunas, the firm’s latest filing includes 27 products spanning equities, including Tesla, Nvidia, Alphabet, Coinbase, and several crypto assets. “They haven’t even approved 3x, and VolShares is like, let’s try 5x,” Balchunas quipped, referring to the regulator’s ongoing caution toward high-risk leveraged instruments. The proposed funds, if approved, could go live as early as December 29, 2025. However, their ticker symbols and management fees remain undisclosed. Why a 5x XRP ETF raises eyebrows While the prospect of a 5x XRP ETF sounds enticing for traders seeking amplified exposure, industry observers warn that such products carry extreme volatility and compounding risks. Advertisement &nbsp By design, a 5x ETF aims to deliver five times the daily returns of its underlying asset. That is, a 2% move in XRP could translate to a 10% swing in the ETF’s value, in either direction. Financial analysts have cautioned that these funds reset their leverage daily, which can lead to volatility decay, eroding returns over time, especially during choppy market conditions. As one commentator put it, a 5x XRP ETF would be “one of the riskiest and most volatile products available in the U.S.” The move by Volatility Shares comes amid a record-breaking influx into ETFs across all asset classes. Data from Bloomberg’s Balchunas shows inflows nearing $1 trillion in 2025 alone, highlighting the growing dominance of passive investment vehicles. However, this rapid expansion has sparked debate over market reflexivity and… The post Ripple’s XRP 5x Leveraged ETF Filing Raises Eyebrows as SEC Yet to Approve 3x Crypto Products ⋆ ZyCrypto appeared on BitcoinEthereumNews.com. Advertisement &nbsp &nbsp A new wave of highly leveraged exchange-traded funds (ETFs) could soon storm the stock and crypto markets if approved. U.S.-based issuer Volatility Shares has filed with the Securities and Exchange Commission (SEC) to launch an ambitious lineup of 3x and 5x ETFs tied to individual stocks and cryptocurrencies, including Bitcoin, Ether, Solana, and XRP. According to Bloomberg ETF analyst Eric Balchunas, the firm’s latest filing includes 27 products spanning equities, including Tesla, Nvidia, Alphabet, Coinbase, and several crypto assets. “They haven’t even approved 3x, and VolShares is like, let’s try 5x,” Balchunas quipped, referring to the regulator’s ongoing caution toward high-risk leveraged instruments. The proposed funds, if approved, could go live as early as December 29, 2025. However, their ticker symbols and management fees remain undisclosed. Why a 5x XRP ETF raises eyebrows While the prospect of a 5x XRP ETF sounds enticing for traders seeking amplified exposure, industry observers warn that such products carry extreme volatility and compounding risks. Advertisement &nbsp By design, a 5x ETF aims to deliver five times the daily returns of its underlying asset. That is, a 2% move in XRP could translate to a 10% swing in the ETF’s value, in either direction. Financial analysts have cautioned that these funds reset their leverage daily, which can lead to volatility decay, eroding returns over time, especially during choppy market conditions. As one commentator put it, a 5x XRP ETF would be “one of the riskiest and most volatile products available in the U.S.” The move by Volatility Shares comes amid a record-breaking influx into ETFs across all asset classes. Data from Bloomberg’s Balchunas shows inflows nearing $1 trillion in 2025 alone, highlighting the growing dominance of passive investment vehicles. However, this rapid expansion has sparked debate over market reflexivity and…

Ripple’s XRP 5x Leveraged ETF Filing Raises Eyebrows as SEC Yet to Approve 3x Crypto Products ⋆ ZyCrypto

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A new wave of highly leveraged exchange-traded funds (ETFs) could soon storm the stock and crypto markets if approved. U.S.-based issuer Volatility Shares has filed with the Securities and Exchange Commission (SEC) to launch an ambitious lineup of 3x and 5x ETFs tied to individual stocks and cryptocurrencies, including Bitcoin, Ether, Solana, and XRP.

According to Bloomberg ETF analyst Eric Balchunas, the firm’s latest filing includes 27 products spanning equities, including Tesla, Nvidia, Alphabet, Coinbase, and several crypto assets.

“They haven’t even approved 3x, and VolShares is like, let’s try 5x,” Balchunas quipped, referring to the regulator’s ongoing caution toward high-risk leveraged instruments.

The proposed funds, if approved, could go live as early as December 29, 2025. However, their ticker symbols and management fees remain undisclosed.

Why a 5x XRP ETF raises eyebrows

While the prospect of a 5x XRP ETF sounds enticing for traders seeking amplified exposure, industry observers warn that such products carry extreme volatility and compounding risks.

Advertisement

&nbsp

By design, a 5x ETF aims to deliver five times the daily returns of its underlying asset. That is, a 2% move in XRP could translate to a 10% swing in the ETF’s value, in either direction.

Financial analysts have cautioned that these funds reset their leverage daily, which can lead to volatility decay, eroding returns over time, especially during choppy market conditions. As one commentator put it, a 5x XRP ETF would be “one of the riskiest and most volatile products available in the U.S.”

The move by Volatility Shares comes amid a record-breaking influx into ETFs across all asset classes. Data from Bloomberg’s Balchunas shows inflows nearing $1 trillion in 2025 alone, highlighting the growing dominance of passive investment vehicles.

However, this rapid expansion has sparked debate over market reflexivity and the idea that ETFs absorb volatility until it explodes, potentially amplifying systemic risks.

If approved, the 5x XRP ETF could redefine leveraged crypto exposure in traditional finance. But for now, it is a bold, and potentially perilous, experiment.




Source: https://zycrypto.com/ripples-xrp-5x-leveraged-etf-filing-raises-eyebrows-as-sec-yet-to-approve-3x-crypto-products/

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