The funds aim to combine aggressive growth potential with strategies designed to generate consistent income.
It plans to employ options-based techniques, such as credit call spreads, to enhance returns while mitigating some of the risks associated with leveraged positions. Investors would benefit from amplified exposure to XRP and Solana without needing to engage in margin trading.
Rather than directly holding XRP or SOL, the ETFs would primarily invest in derivatives, including swap agreements and options linked to US-listed XRP and SOL ETFs.
The funds may also allocate capital to cash-settled futures and other exchange-traded products that track the price movements of these digital assets. The structure is intended to provide both long-term capital appreciation and current income, appealing to a broad spectrum of traditional investors.
This growing regulatory clarity has contributed to a surge in market interest for products linked to these altcoins.
Interestingly, investor appetite for these products is already evident in the market.
Similarly, the REX Shares Solana Staking ETF (SSK), which launched less than two months ago, has attracted over $160 million in net inflows.
These milestones indicate that investors are increasingly seeking structured exposure to these digital assets.