Share-split context: A reverse split was recorded on Feb 27, 2026 with coefficient 0.05. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: Volatility Shares Trust XRP 2X ETF (XRPT)

The Volatility Shares Trust XRP 2X ETF (XRPT) is a leveraged ETF designed to provide double the daily return of its target asset. Based on the data, this fund is characterized by very high price volatility and a severe erosion-risk warning.

What this ETF is trying to do

XRPT is a leveraged fund. This means it uses financial tools to amplify the movements of its underlying asset. Because it is a "2X" fund, it aims to move twice as much as the asset it tracks. Leveraged ETFs are generally designed for short-term trading rather than long-term investing.

What the numbers show

The recent performance of XRPT shows a significant decline in share price:

• Year-to-Date (YTD) Price Return: -65.75%

• One-Year Price Return: -88.88%

When looking at Total Return (which includes distributions), the numbers are similar: the YTD total return is -65.42% and the one-year total return is -88.73%. This indicates that the distributions provided very little offset to the large drop in share price.

Income and Distribution Explanation

XRPT usually pays distributions monthly. Over the last 12 months, it has made 12 payments.

• Distribution Yield: 0.83%

• Trailing Distributions: 0.28

For new investors, it is important to remember that a distribution yield is not the same as a total return. In this case, the yield is very low compared to the significant decline in the share price.

Price and NAV Erosion Explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the price-based evidence is significant. XRPT has a severe erosion-risk flag and an erosion score of 10, which is labeled as "Severe price erosion."

Additionally, this ETF has a history of a reverse split (most recently on February 27, 2026). In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the per-share price. This mechanical increase does not restore lost investment value.

Top Holdings

As of October 8, 2026, the fund holds:

• First American Government Obligs X (FGXXX): 4.00%

Pros

• Provides a way to get leveraged exposure to its target asset without managing the leverage manually.

• Offers a regular monthly distribution schedule.

Cons

• Severe price deterioration over the last year.

• High risk of price erosion.

• History of reverse splits to manage the share price.

Beginner Takeaway

XRPT is a high-risk, leveraged tool. The data shows a severe decline in price over the last year and a severe erosion-risk warning. While it pays monthly distributions, the yield is low and has not prevented a large loss in total return.