Investors will be exposed to leveraged crypto Exchange Traded Funds (ETFs) following the launch of XRP and Solana ETFs.
On Tuesday, financial company Proshares, which specializes in ETFs, launched two ETFs–ProShares Ultra Solana ETF (SLON) and the ProShares Ultra XRP ETF (UXRP). These ETFs follow twice the performance of their cryptocurrencies they are linked to.
“As cryptocurrencies become more widely adopted, investors are turning to platforms like Solana and XRP for exposure to next-generation blockchain technologies,” said ProShares CEO Michael L. Sapir. “SLON and UXRP provide the opportunity to target leveraged exposure to Solana and XRP, allowing investors to overcome the challenges of acquiring leveraged exposure to these cryptocurrencies.”
What is a leveraged ETF?
An ETF is a type of investment fund that holds a basket of assets like crypto, bonds, or precious metals. A leveraged ETF uses financial derivatives and debt (leverage) to amplify the returns of an underlying index or asset. For instance, if the XRP price goes up by 5%, the UXRP price could increase by 10%.
XRP price hits resistance at $3
Sandwiched inside a bearish rising wedge, XRP was rejected at the resistance level at $3. However, despite the rejection, the bulls are pushing it one more time towards $3. As the bulls keep pushing the price, XRP may continue rebounding within the upper and lower trendlines of the rising wedge up until the $3 level. This time around, if the bulls manage to break the resistance level, Ripple’s token could reach $3.2.
