XRP futures ETF has officially entered the U.S. market, with the Volatility Shares XRP ETF (XRPI) launching on the Nasdaq exchange this Thursday, signaling a pivotal step in mainstream acceptance of Ripple’s native asset.
The Volatility Shares XRPI ETF stands out as the first U.S.-based exchange-traded fund focused solely on XRP futures, reflecting increasing investor appetite for digital asset derivatives. With a gross expense ratio of 1.15% and a reduced net expense ratio of 0.94% after accounting for fee waivers, XRPI offers investors a new avenue to gain exposure to XRP price movements via regulated futures markets.
According to its prospectus, the fund is designed to allocate a minimum of 80% of its holdings to XRP futures contracts and other exchange-traded products (ETPs) linked to XRP performance. This strategic investment structure positions XRPI as an accessible tool for market participants interested in XRP without acquiring the token directly.
Volatility Shares doesn’t intend to stop there. The firm revealed ambitions to launch an additional leveraged 2x XRP futures ETF in the near future. That product would compete directly with Teucrium’s XXRP — another XRP-linked offering that went live in April. The leveraged ETF would aim to double the daily returns of XRP futures, appealing to more aggressive traders.
The Teucrium XXRP has experienced a robust reception since its debut, amassing $121 million in assets under management in a short time span. Bloomberg senior ETF analyst Eric Balchunas remarked that this early success bodes well for XRPI’s potential to attract interest and capital from similar investor demographics.
As Ripple’s regulatory landscape continues to evolve and institutional adoption of crypto derivatives grows, the launch of XRPI could mark a transformative moment for how traditional financial players interact with XRP. ETFs such as XRPI offer a bridge between conventional finance and the crypto ecosystem, allowing compliance-minded firms and individuals to participate in digital asset markets with familiar investment vehicles.
This development also underscores Nasdaq’s growing role as a hub for crypto-linked financial products, reinforcing its position alongside other traditional exchanges seeking to modernize their offerings in response to burgeoning demand for cryptocurrency exposure.
Related: Expert Advice: Sell XRP If You’re Confused
In conclusion, the entrance of XRPI into the marketplace not only reflects growing trust in XRP-backed funds but also paves the way for broader innovation in crypto-related ETFs. As investor confidence continues to rise around regulated digital asset products, efforts such as those by Volatility Shares and Teucrium are likely to shape the future of crypto investment in the United States.
