The Fund aims to deliver two times the daily price performance of XRP for a single day, not for any other period. According to the fund’s profile:
“XRP is one of the most widely traded cryptocurrencies in the digital asset market.[1] The supply and demand for XRP are often influenced by regulatory developments, technological advancements, and market sentiment, making it an active and dynamic asset for traders. XRP is an innovation with a limited history. There is no guarantee that usage will grow; declining usage could heighten volatility or lower XRP’s price, negatively affecting the Fund.”
Launching on Tuesday, April 8, the leveraged ETF comes amid an extended period of uncertainty. The SEC has yet to clarify its stance on the appeal against the Programmatic Sales of XRP ruling, contributing to the pullback from January’s high of $3.3999. The SEC’s appeal strategy may determine the fate of the XRP-spot ETF applications and influence XRP’s supply-demand trajectory.
Ripple’s Court Deadline Looms: Will the SEC Drop Its Appeal?
Notably, Ripple must file its appeal-related reply brief by April 16 to contest the SEC’s appeal-related opening brief. In March, Ripple CEO Brad Garlinghouse stated that the SEC planned to withdraw its appeal. A withdrawal before Ripple’s filing deadline could help prevent a market sell-off. A resolution to the SEC vs. Ripple case could pave the way for a US XRP-spot ETF market. Investors expect XRP-spot ETFs to draw significant interest, potentially sending XRP to record highs.
The leveraged XRP ETF’s launch could give investors insights into the current demand for XRP-related products. However, ongoing tariff-fueled market volatility may weigh on near-term demand.
XRP Price Outlook: Legal and ETF Catalysts
On Monday, April 7, XRP dropped 1.22%, adding to Sunday’s 10.38% plunge, closing at $1.8983. XRP underperformed the broader market, which advanced by 0.61%, taking the total crypto market cap to $2.47 trillion.
