The ProShares Ultra XRP ETF (UXRP), which seeks to deliver twice the daily performance of the Bloomberg XRP Index, has plunged more than 94% since its debut in July 2025.
As of early August 2026, the fund is trading near $10.30, down roughly 95.5% from its 52-week peak of $231.20. Meanwhile, XRP is on the cusp of collapsing below $1, CoinGecko data shows.
UXRP is designed to amplify the cryptocurrency’s daily price movements via derivatives. The keyword is daily. The fund resets its leverage every trading session, meaning its long-term returns can diverge dramatically from the underlying asset.
This is known as volatility drag or beta slippage, which causes leveraged ETFs to lose value in choppy markets.
Leveraged ETFs (LETFs) are designed strictly as daily trading tools. However, a subculture of retail investors, quantitative traders, and FIRE (Financial Independence, Retire Early) enthusiasts hold funds like TQQQ (3x Nasdaq-100), UPRO (3x S&P 500). For instance, between 2010 and 2021, (one holding TQQQ long-term yielded staggering gains of over 10,000%.
Spot XRP ETFs also under pressure
Spot XRP ETFs have also endured a difficult 2026 due to the poor state of the broader market.
The approval and rollout of spot XRP ETFs in late 2025 represented one of the industry’s biggest regulatory milestones. They have attracted $1.5 billion in cumulative initial inflows as institutional and retail investors gained regulated access to XRP without managing wallets or private keys.
XRP entered a prolonged correction that weighed heavily on every major spot ETF. As of August, all leading products have posted year-to-date losses exceeding 40%.
The Bitwise XRP ETF manages approximately $304 million in assets under management despite falling roughly 43.2% year-to-date. Canary Capital’s XRPC, with nearly $248.9 million in assets, has lost about 40.4%.
Despite these declines, spot ETFs continue to see rather healthy (albeit modest) inflows.
