A plan for XXRP during the XRP surge, but beware this factor

crypthub

2 days ago

Fund Structure and Costs

XXRP is a 2× daily leveraged ETF that seeks 200 % of XRP’s daily return, not its spot price. It holds a book of January 2026 XRP futures and cash equivalents, giving ~111 % + 89 % exposure. The total expense ratio is 1.89 % plus a 0.26 % spread, which is high for a crypto vehicle. Daily rebalancing keeps the leverage target but adds cost.

Performance Decay and Risks

Because leverage is compounded daily, any holding beyond one day can diverge sharply from the underlying, especially in volatile periods. Monthly futures rolls in contango create structural drag, effectively selling low and buying high. In under a year XXRP lost about 57 % while XRP fell less than 10 %. Hence the product is suitable only for very short‑term, preferably intraday, trades.

Underlying XRP Drivers

XRP has surged recently, aided by a programmed scarcity program that locks 500 million tokens until 2028. The market rewards this supply shock, supporting price momentum and attracting capital from weakening Bitcoin flows. Technical charts show a bullish trend with support zones buying pressure. This backdrop fuels optimism for the base asset.

Strategic Outlook

The author remains bullish on XRP but advises using XXRP only for ultra‑short positions, such as one‑hour frames with a 14‑period RSI to confirm demand. Holding beyond the daily horizon introduces “hyper‑risk” and erodes returns. A HOLD rating reflects confidence in XRP yet acknowledges the ETF’s limited role. Traders should focus on intraday support levels rather than long‑term exposure.