In a major step forward for crypto investment products, Volatility Shares has officially launched the first-ever XRP futures ETF on the Nasdaq under the ticker $XRPI, giving investors regulated access to Ripple’s native asset through derivative instruments.
The groundbreaking product, introduced on May 22, represents a significant milestone for the crypto ETF landscape, offering indirect exposure to XRP via futures contracts a structure similar to early Bitcoin ETFs.
A New Era for XRP Investment
According to the SEC filing dated May 21, the XRP futures ETF is structured under the Volatility Shares Trust and will allocate at least 80% of its net assets to XRP-linked instruments, including CME-traded XRP futures contracts. To achieve this, Volatility Shares is utilizing a subsidiary based in the Cayman Islands, a common mechanism for ETF exposure to crypto derivatives.
This launch not only marks the first 1x XRP futures ETF, but also lays the groundwork for a leveraged 2x XRP futures ETF, which aims to deliver twice the daily performance of XRP futures, catering to more aggressive, risk-tolerant investors.
Growing Market Confidence in XRP-Based ETFs
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, called the 1x XRP futures fund a “market first” on social platform X, emphasizing the increasing momentum behind Ripple-focused financial products. He referenced the earlier success of Teucrium’s 2x leveraged XRP futures ETF launched in April, which has already gathered $120 million in AUM and sees daily volumes of $35 million, showcasing clear market appetite.
The rapid growth of these funds comes amid rising speculation that the SEC may approve spot XRP ETFs those that hold XRP directly by the end of 2025.
What’s Next: Spot XRP ETFs on the Horizon?
Industry experts and ETF issuers are growing increasingly optimistic about regulatory approval for spot-based XRP ETFs. According to prediction market Polymarket, the odds of a spot XRP ETF approval by 2025 have surged to 83%.
Nate Geraci, president of The ETF Store, noted, “I simply don’t see this SEC not approving a spot XRP ETF,” echoing a widely held belief that regulatory momentum is favoring digital asset funds with direct holdings.
Firms such as Franklin Templeton, 21Shares, and Bitwise are actively preparing to launch spot XRP ETFs, pending regulatory green lights. The success of $XRPI and its leveraged counterparts could be instrumental in building the case for these future products.
Final Thoughts
The launch of the $XRPI ETF by Volatility Shares signals a critical turning point for institutional access to XRP, offering investors a compliant and convenient avenue to gain exposure through a regulated market. With leveraged XRP ETFs and potential spot ETFs on the horizon, the path ahead looks increasingly bullish for XRP and the broader crypto ETF ecosystem.
As crypto markets mature and regulators provide clearer frameworks, financial products like $XRPI are likely just the beginning of a new wave of mainstream adoption.
