Insanely Risky 5x XRP ETF Proposed by Volatility Shares

U.S.-based ETF provider Volatility Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a set of 5x leveraged exchange-traded funds (ETFs) for a slew of cryptocurrencies, including XRP. 

Apart from individual cryptocurrencies, Volatility Shares has also filed to offer 5X ETF products for a wide range of stocks, including COIN (Coinbase), CRCL (Circle), GOOGL (Alphabet), and MSTR (MicroStrategy). 

Insanely risky 

As reported by U.Today, GraniteShares, another unorthodox issuer, recently filed for a 3x XRP ETF, but the latest offerings from the SEC definitely upped the ante.

A 5x XRP ETF would certainly be one of the riskiest and most volatile products available in the U.S. 

For instance, if the XRP rises by 2% in a day, the ETF would aim to rise by 10%, but this, of course, also applies to potential price drops. 

Of course, one should also take into account volatility decay and compounding risks since such ETFs reset leverage on a daily basis.

 “They haven’t even approved 3x, and VolShares is like, let’s try 5x,” Eric Balchunas commented.