VolShares has submitted filings for 5x leveraged crypto ETFs, including SOL, ETH, and XRP. This comes in spite of the US SEC pausing product approvals and reviews because of the ongoing government shutdown.
VolShares Bets Big on Leverage With New Crypto ETF Filings
VolShares has officially filed for a new set of 5x leveraged ETFs. These are linked to major cryptocurrencies like Ethereum (ETH), Solana (SOL), and XRP. They are filed for stock ETFs from companies like Nvidia, Tesla, and Coinbase.
Bloomberg ETF analyst Eric Balchunas confirmed the development on X. He noted that while the SEC has yet to approve even 3x crypto ETFs, this firm is already aiming for a 5x product.
Balchunas suggested that the firm could be taking advantage of procedural windows that allow filings to proceed even while the SEC’s operations are frozen. If no resolution comes within 75 days, the filings could automatically become effective under U.S. securities laws.
Earlier in May, VolShares launched the XRPI ETF, the first-ever 1x XRP futures ETF in the U.S. The fund offers unleveraged exposure to XRP’s futures performance.
Before that, VolShares had introduced the XRPT 2x ETF, designed to provide double the daily performance of XRP through registered, transparent investment vehicles. The 5x proposal, however, is the most aggressive yet, multiplying both risk and reward.
Leveraged ETFs aim to boost returns by borrowing money and using financial contracts. They reset their values daily, which can make it hard to predict long-term results. These ETFs are mainly used by professional traders seeking short-term investment opportunities.
Notably, GraniteShares also filed for a 3x leveraged XRP ETF last week. The firm plans to launch both long and short leveraged ETFs for four major cryptocurrencies. This will let traders gain three times the exposure to each asset’s daily price movements.
SEC Gridlock Slows Progress, But Filings Continue
The latest filings come amid an ongoing SEC review freeze. The commission confirmed that it will not process or approve new applications until the U.S. government reopens. This pause has delayed several crypto ETF approvals, including spot products for SOL, XRP, and ETH.
Issuers are still moving forward despite this. REX-Osprey recently applied for 21 crypto ETFs that focus on individual tokens such as Cardano (ADA), Stellar (XLM), Sui (SUI), and Hype (HYPE).
In addition, well-known asset managers like Grayscale, Bitwise, Franklin Templeton, and WisdomTree have updated their applications for XRP funds. This shows they are preparing to launch soon.
Market watchers believe these developments could be key for the ETF industry. As Nate Geraci of ETF Store previously shared, the flurry of filings shows how close issuers are to full regulatory acceptance. Once the SEC resumes operations, analysts expect a wave of approvals to hit the market.
Source: https://coingape.com/crypto-etf-update-volshares-pushes-ahead-with-5x-eth-sol-xrp-etfs-amid-sec-delays/
