GraniteShares Files for Leveraged XRP ETF: 3x Long and Short Products Join Bitcoin, Ethereum, and Solana Lineup

GraniteShares has submitted SEC filings for a suite of leveraged XRP exchange-traded funds, including 3x long and 3x short products, marking another significant milestone in the evolving landscape of cryptocurrency investment vehicles. The filing, revealed through Form N-1A documents registered with the U.S. Securities and Exchange Commission, positions XRP alongside Bitcoin, Ethereum, and Solana in GraniteShares' leveraged crypto ETF portfolio.

What's in the Filing

According to SEC registration documents dated October 2025, the GraniteShares XRP ETF Trust includes multiple fund structures designed to provide amplified exposure to XRP price movements. The filing indicates products offering both 3x long leveraged exposure and 3x short (inverse) exposure to XRP's daily performance.

The proposed funds would join GraniteShares' existing lineup of leveraged cryptocurrency products. The New York-based ETF issuer currently manages approximately $10 billion in assets across nearly 150 funds, with a strong focus on leveraged single-stock and cryptocurrency products.

Growing XRP ETF Ecosystem

The GraniteShares filing emerges amid an unprecedented wave of XRP ETF applications. The SEC is currently reviewing multiple XRP ETF applications, with final decisions expected on most applications by October 2025. Six XRP spot ETF deadlines fall between October 18-24, making it the busiest approval window to date.

Several XRP futures-based ETFs are already trading in U.S. markets:

• ProShares dominates the futures ETF space with its UXRP product that targets daily XRP returns of 2x, launched in July 2025
• Volatility Shares XRP ETF went live on May 22, 2025, becoming the first non-leveraged XRP futures ETF in the U.S.
• The Volatility Shares 2X XRP ETF launched in July 2025, offering leveraged 2x exposure
• REX-OSPREY officially went live on September 18, 2025, offering investors direct spot exposure to XRP

Regulatory Momentum Builds

On September 17, 2025, the SEC approved a set of generic listing standards for exchange-traded products tied to spot commodities, including digital assets. This regulatory framework could accelerate the approval process for both spot and leveraged cryptocurrency ETFs.

In August 2025, the appeals court decisively dismissed the SEC's lawsuit against Ripple, confirming that programmatic sales are not securities. This landmark ruling removed a major regulatory hurdle for XRP-based investment products and strengthened the case for ETF approvals.

The regulatory clarity has emboldened asset managers. Currently, ProShares Ultra XRP ETF is the only approved leveraged XRP ETF in the U.S., but pending applications from major issuers including Grayscale, 21Shares, Bitwise, Canary Capital, WisdomTree, Franklin Templeton, and CoinShares could soon expand the market significantly.

Understanding Leveraged Crypto ETFs

Leveraged ETFs use derivatives and debt to amplify the daily returns of an underlying asset. A 3x long ETF seeks to deliver three times the daily return of XRP, while a 3x short (inverse) ETF aims to deliver negative three times the daily return—profiting when XRP prices decline.

GraniteShares specializes in these products. The firm pioneered leveraged single-stock ETPs in Europe starting in 2017 before expanding to the U.S. market. The company offers similar leveraged products for major technology stocks and cryptocurrencies.

Critical considerations for leveraged ETFs:

• Daily reset mechanism: These funds rebalance daily, which can cause performance to diverge significantly from expected multiples over periods longer than one day
• Volatility decay: In choppy markets, even if the underlying asset ends flat, leveraged ETFs can lose value due to compounding effects
• Short-term trading tools: Leveraged ETFs are designed for tactical, short-term positions, not buy-and-hold investing
• Amplified risk: A 3x leveraged fund can theoretically lose 100% of its value in a single day if the underlying asset moves against the position by 33% or more

XRP/Ripple Implications

The expansion of XRP ETF offerings carries significant implications for Ripple and the broader XRP ecosystem:

Institutional Access: Leveraged ETF products provide sophisticated traders and institutions with amplified XRP exposure through regulated, SEC-registered vehicles. This eliminates the operational complexities of managing cryptocurrency wallets, private keys, and exchange accounts while offering the benefits of traditional brokerage custody.

Market Liquidity: Bloomberg Intelligence ETF analyst James Seyffart noted that Solana and XRP stand out because of their existing futures markets, which provide the infrastructure necessary for leveraged products. Increased ETF activity typically enhances overall market liquidity and price discovery.

Price Volatility: The introduction of 3x leveraged products could amplify short-term price movements in XRP. Leveraged ETFs must rebalance daily, which can create additional buying or selling pressure during periods of significant price movement. This dynamic could increase intraday volatility.

Regulatory Legitimacy: The approval of these products would implicitly strengthen XRP's legitimacy as a commodity-like asset in regulated markets. Each successful ETF approval reinforces the legal distinction between XRP and securities, supporting Ripple's long-term regulatory positioning.

Competitive Landscape: XRP joins an exclusive club of cryptocurrencies with multiple leveraged ETF options. Bitcoin and Ethereum have established leveraged product ecosystems, while Solana recently gained similar offerings. This positions XRP among the top tier of institutionally recognized digital assets.

Partnership Opportunities: Enhanced regulatory clarity and increased institutional participation through ETFs could strengthen Ripple's ability to forge partnerships with traditional financial institutions. Banks and payment processors may view regulated investment products as validation of XRP's utility in cross-border payments.

Adoption Metrics: Analysts project $5-7 billion in first-year flows if multiple XRP ETF products receive approval. While leveraged products typically attract trading-oriented capital rather than long-term investment, significant flows would demonstrate market demand and could support price appreciation.

Market Context and Outlook

With 16 crypto ETF applications on the SEC's October calendar, a new regulatory framework could fast-track approvals for Solana, XRP and beyond. The convergence of multiple approval deadlines suggests the SEC may issue decisions in clusters rather than individually.

Bloomberg Intelligence ETF analyst James Seyffart cautioned against expecting Bitcoin-level inflows, stating these products will do decently well but the long-term growth story may lie in basket or index products. However, the availability of both spot and leveraged options provides flexibility for different investor preferences and risk tolerances.

The SEC can extend deadlines, but under the new generic listing standards, the SEC has less room to stall. This regulatory momentum, combined with Ripple's legal victories and established futures markets, creates a favorable environment for XRP ETF approvals.

Key Takeaways

The GraniteShares filing represents the latest development in an accelerating trend toward regulated XRP investment products. With leveraged options potentially joining multiple spot and futures-based offerings, investors will soon have unprecedented flexibility in gaining XRP exposure through traditional brokerage accounts. The October 2025 approval window could prove transformative for XRP's institutional adoption and market structure.

As the crypto ETF landscape continues expanding rapidly, investors should carefully consider the risks associated with leveraged products and consult financial professionals before making investment decisions. The combination of regulatory clarity, established infrastructure, and growing institutional interest positions XRP for a pivotal moment in its evolution as a mainstream investment asset.

Sources

• SEC Edgar Database - GraniteShares Filings
• CCN - XRP ETFs Tracker: Spot vs. Futures Filings
• Coinpedia - Full List of XRP ETFs Awaiting SEC Approval
• Cointelegraph - Altcoin ETFs Face Decisive October
• ETF Express - GraniteShares Celebrates New Products
• CoinDesk - SEC Approves Grayscale Multi-Asset Crypto ETF
• ETF.com - Will There Be a Spot XRP ETF?
• TradingView - Full List of XRP ETF Filings

DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice, advertising, or a recommendation to buy, sell, or hold any securities. This content is not sponsored by or affiliated with any of the mentioned entities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.