Ripple Prime's $64 million SanDisk swap has no link to XRP

Ripple Prime finances a small slice of one leveraged fund's SanDisk bet. As of July 31, 2026, the Tradr 2x Long SNDK Daily ETF's N-PORT report to the SEC lists one swap with Hidden Road Ripple Prime. Its notional, the base its payments are calculated on, was about $64.4 million, or about 2.6% of the $2.45 billion across the fund's six swaps. That filing sits behind The Wall Street Journal's Oct. 7 report that Ripple has emerged as a serious player in swap financing for leveraged ETFs.

A 2x daily fund aims to deliver twice a stock's daily move. It can get there through a total return swap: the counterparty pays the fund the stock's return, and the fund pays a floating rate plus a spread. All six of this fund's swaps, Ripple Prime's included, paid the total return on SanDisk stock, and none referenced XRP or another crypto asset. That sets the fund apart from the XRP spot ETFs, which hold the token itself.

On price, the fund owes OBFR01 plus 400 basis points, or 4 percentage points, on the Ripple Prime swap. OBFR01 apparently refers to the New York Fed's Overnight Bank Funding Rate; the filing leaves the term undefined, so that is a reading. The fund's notional-weighted average spread was about 535 basis points, which puts Ripple Prime about 135 below it. Ripple Prime's share of the wider market would show in other funds' filings naming it, or in a volume figure from Ripple.

Ripple Prime is 2.6% of one fund's swaps

The fund's July 31 filing reported net assets of about $1.37 billion. Its six swaps came to about 1.79 times that in notional. The Journal cites Morningstar Direct data showing 593 leveraged ETFs in the U.S. with more than $256 billion in assets, 426 of them single-stock funds. Those figures count fund assets, a different base from swap notional.

Three of the six swaps show the range of size and price:

• Wells Fargo Securities: about $1.40 billion in notional, about 57% of the swap total.
• Clear Street: about $784.1 million, about 32%, at OBFR01 plus 1,000 basis points, the fund's highest spread.
• Hidden Road Ripple Prime: about $64.4 million, about 2.6%, at OBFR01 plus 400 basis points.

All shares and averages here are our calculation from the six swap records in the July 31 filing, with the fund's two SanDisk call options left out. Each share is a swap's notional over the six-swap total. The average weights each spread by its swap's notional and assumes the spread applies to that notional.

The Ripple Prime swap was scheduled to end Aug. 24, 2027, later than any of the fund's other five swaps. On July 31, 2026, it showed unrealized depreciation of about $4.0 million from the fund's side, a paper loss at that day's prices. Upfront payments stood at zero in both directions.

The Journal's 8% is an annual rate

The Journal, citing a regulatory filing, reported that the Tradr fund pays Ripple a fee based on the overnight bank funding rate plus 4 percentage points. It described that fee as roughly 8% of the fund's assets a year.

As an annual rate, the 8% holds up. The New York Fed published the Overnight Bank Funding Rate at 3.88% for Oct. 6, 2026, the level it had held since at least Sept. 28. Add 4 points, and the rate comes to about 7.88%.

In the filing, those 4 points sit on the payment leg of the Ripple Prime swap. That swap's notional was about 4.7% of the fund's net assets on July 31, 2026.

Take a round example. At the Oct. 6 rate, every $1 million of notional would cost the fund about $78,800 a year, if the rate applies to notional. The rate on the July 31 report date can differ.

Public filings show a narrower footprint

The Journal reported that Ripple bought Hidden Road, a prime broker, for $1.25 billion and that Ripple Prime now works with a number of ETF providers. A prime broker finances, clears and lends for professional investors. Ripple Prime President Noel Kimmel told the paper that swap financing is “definitely a growing and meaningful part of our business.”

An EDGAR full-text search of N-PORT filings on Oct. 8, 2026, returned one filing naming “Ripple Prime”: Investment Managers Series Trust II's report for July 31, 2026. A search for “Hidden Road” returned three, from Listed Funds Trust, Investment Managers Series Trust II and Neuberger Asset-Based Credit Fund.

Funds can name a counterparty in different ways, so these counts measure filings that use the exact names. The Tradr filing lists Hidden Road Ripple Prime without an LEI, the global legal entity identifier. Which Ripple legal entity holds that swap is still unconfirmed.

The Listed Funds Trust filing covers a 21Shares 2x leveraged ETF. As of June 30, 2026, it listed a swap on a FTSE index with Hidden Road Partners CIV US LLC. The notional was about $9.0 million, against net assets of about $4.5 million.

Watch three filers' next N-PORT reports

The next N-PORT filings from the three registrants will show whether Ripple Prime or Hidden Road appears more often, at larger notional or on crypto assets. The Investment Managers Series Trust II filing on hand carries a report date of July 31, 2026, and the Listed Funds Trust filing June 30, 2026. Neuberger Asset-Based Credit Fund turned up in the Oct. 8 search for “Hidden Road.”

You can run the same EDGAR searches for both names yourself. The CryptoTuts ETF flows tracker follows where crypto ETF money moves in the meantime.