What happened?
Volatility Shares filed for a 5X leveraged ETF tied to XRP, adding to its existing crypto ETF lineup. The fund would use futures and options to magnify exposure for investors seeking bigger returns. This filing is part of a wave of 3X and 5X ETF applications that show Wall Street is leaning further into crypto products.
Who does this affect?
This affects high-conviction traders and institutional investors looking for amplified crypto exposure, as well as retail traders attracted to bigger potential gains. Exchanges, market makers, and liquidity providers will likely see increased trading and demand for XRP-related instruments. Existing XRP holders should brace for more volatility since leveraged products can magnify both upside and downside moves.
Why does this matter?
A 5X XRP ETF could drive meaningful inflows and liquidity into XRP, helping to support higher prices if adoption grows. At the same time, leveraged ETFs amplify price swings, raising short-term risk and the potential for rapid drawdowns. Overall, more institutional product availability strengthens the bull case for XRP over the long term while making near-term market action more volatile.