REX Shares is launching leveraged ETFs for XRP and Solana, providing 2x daily returns through derivatives like swaps. These funds, including the T-REX 2X Long SOL Daily Target ETF (SOLX) and T-REX 2X Long XRP Daily Target ETF (XRPK), offer amplified exposure without direct crypto holdings, while the SSK ETF adds liquid staking rewards via JitoSOL.
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REX Shares’ SOLX and XRPK ETFs deliver 2x daily returns on Solana and XRP using swaps and derivatives for regulated access.
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The SSK ETF incorporates JitoSOL for tradeable staked Solana, allowing investors to earn native staking rewards in a traditional ETF structure.
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These products have already attracted over $100 million in assets for SSK since its July launch, highlighting growing demand for leveraged and staked crypto investments with 1.5% fees.
Leveraged XRP and Solana ETFs from REX Shares launch tomorrow, offering 2x returns and staking rewards. Boost your crypto portfolio with regulated exposure—explore now for amplified gains and liquidity.
What are the New Leveraged XRP and Solana ETFs from REX Shares?
Leveraged XRP and Solana ETFs from REX Shares represent innovative investment vehicles designed to provide twice the daily performance of their underlying cryptocurrencies. Launching on the Cboe BZX Exchange, the T-REX 2X Long SOL Daily Target ETF (SOLX) and T-REX 2X Long XRP Daily Target ETF (XRPK) use swaps and derivatives to achieve this leverage, avoiding direct ownership of Solana or XRP. This approach allows investors to gain enhanced exposure through familiar ETF structures in brokerage accounts, with management by Tuttle Capital Management and a 1.5% annual fee on assets.
These ETFs invest partially through a Cayman Islands subsidiary for derivatives exposure, while holding excess assets in secure instruments such as U.S. Treasuries and money market funds. REX Shares emphasizes that this setup amplifies daily returns tied to spot prices, making it suitable for short-term trading strategies focused on Solana and XRP price movements.
The launch builds on the momentum of REX Shares’ prior offerings, providing a bridge between traditional finance and the crypto market. By leveraging established exchange infrastructure, these funds aim to attract institutional and retail investors seeking higher potential yields without the complexities of direct crypto custody.
How Do These Leveraged ETFs Achieve 2x Daily Returns Without Holding Crypto Directly?
The leveraged XRP and Solana ETFs employ financial derivatives, primarily swaps, to mirror and double the daily performance of Solana (SOL) and XRP spot prices. According to documentation from REX Shares, the funds do not purchase the cryptocurrencies outright; instead, they enter into agreements with counterparties to replicate leveraged returns, reducing operational risks associated with crypto storage and volatility.
This derivative-based strategy ensures compliance with U.S. regulatory standards while offering liquidity through ETF shares traded on the Cboe BZX Exchange. For instance, the SOLX ETF targets 200% of Solana’s daily return, meaning if SOL rises 1%, the ETF aims for a 2% gain before fees and expenses. Historical data on similar leveraged products shows they can enhance returns in bullish markets but amplify losses in downturns, underscoring the need for risk-aware investing.
Expert analysis from financial advisors highlights the efficiency of this model. As noted by Greg King, CEO of REX Financial and Osprey Funds, these ETFs expand access to crypto’s growth potential via regulated channels. Supporting statistics indicate that leveraged ETFs in other asset classes have seen average daily trading volumes exceed 1 million shares, suggesting potential for robust liquidity in SOLX and XRPK.
Furthermore, the 1.5% management fee covers operational costs, including derivative hedging and subsidiary management. This fee structure aligns with industry norms for active crypto-related funds, positioning these ETFs as cost-effective options for amplified exposure. Regulatory filings confirm the use of high-quality collateral, such as cash equivalents, to mitigate counterparty risks inherent in swaps.
Frequently Asked Questions
What Makes the SSK ETF Different from the New Leveraged XRP and Solana ETFs?
The SSK ETF, or REX-Osprey Solana + Staking ETF, stands out by integrating JitoSOL, a liquid staking token that allows staked Solana to earn native network rewards while remaining tradeable. Launched on July 2, it quickly amassed over $100 million in assets under management, unlike the SOLX and XRPK which focus solely on 2x daily leverage without staking features. This combination provides both yield generation and liquidity in a single U.S. ETF product.
Are Leveraged XRP and Solana ETFs Suitable for Long-Term Holding?
Leveraged ETFs like SOLX and XRPK are primarily designed for daily trading due to their compounding effects, which can lead to performance decay over extended periods, especially in volatile markets. Financial experts recommend them for short-term strategies aligned with Solana or XRP price trends, not as buy-and-hold investments. Always consult a financial advisor to assess suitability based on your risk tolerance and goals.
How Does JitoSOL Enhance the SSK ETF’s Appeal for Investors?
JitoSOL in the SSK ETF enables investors to stake Solana while keeping assets liquid and tradeable on secondary markets, earning approximately 6-8% annual staking rewards from the Solana network. This addresses key pain points in traditional staking, such as lock-up periods and redemption risks. As Thomas Uhm, Chief Commercial Officer of the Jito Foundation, explains, it optimizes yield and compatibility for ETF structures, fostering broader adoption in regulated finance.
Key Takeaways
- Leveraged Exposure: SOLX and XRPK ETFs offer 2x daily returns on Solana and XRP via derivatives, enabling amplified crypto participation without direct holdings.
- Staking Innovation: The SSK ETF’s use of JitoSOL combines liquid trading with native rewards, achieving over $100 million in assets shortly after launch.
- Regulatory Bridge: These U.S.-based ETFs on Cboe BZX enhance liquidity and capital efficiency, urging investors to review fees and risks before engaging.
Conclusion
The launch of leveraged XRP and Solana ETFs by REX Shares marks a significant step in integrating cryptocurrency dynamics into mainstream investment portfolios, complemented by the staking capabilities of the SSK ETF through JitoSOL. With strong initial demand evidenced by rapid asset growth and expert endorsements from leaders like Greg King and Thomas Uhm, these products underscore the evolving landscape of regulated crypto access. As the market matures, investors are encouraged to explore these opportunities for enhanced exposure, staying informed on daily performance and market conditions to capitalize on potential growth in Solana and XRP ecosystems.
