Volatility Shares Launches First XRP Futures ETF
Volatility Shares Debuts First XRP Futures ETF
Volatility Shares has launched the first-ever XRP futures ETF in the US, trading on Nasdaq under the ticker XRPI. This follows a post-effective amendment filed with the SEC on May 21, a development confirmed by Bloomberg ETF analyst Eric Balchunas. This is a significant step for XRP investors seeking regulated exposure.
Key Features of the XRPI ETF
- Ticker: XRPI
- Exchange: Nasdaq
- Investment Strategy: Invests at least 80% of its assets in XRP-linked instruments, primarily futures contracts.
- Management Fee: 1.15% (capped at 0.94% through May 2026 due to a fee waiver).
The fund, part of the Volatility Shares Trust, aims to track the price movements of XRP. To maintain its regulated investment company status, it uses a wholly-owned Cayman Islands subsidiary for XRP futures investments. This structure is common for crypto ETFs operating within regulatory frameworks.
A Growing Market for XRP Investments
Volatility Shares joins Teucrium Investment Advisors in offering XRP investment products. Teucrium’s leveraged XRP ETF currently manages approximately $120 million in assets and boasts an average daily trading volume of $35 million. Eric Balchunas noted this as a positive indicator of demand for XRP-related investments.
This launch comes amid ongoing SEC reviews of other proposed XRP ETFs, including spot ETFs from Grayscale and 21Shares, and futures ETFs from ProShares. While the SEC delayed decisions on these, the debut of the Volatility Shares XRP futures ETF highlights the growing investor interest in XRP despite the ongoing regulatory uncertainty surrounding Ripple.
Other XRP futures products, such as those offered by Coinbase and CME, also show substantial market appetite for XRP exposure. CME's XRP futures, for instance, debuted with $19 million in first-day trading volume.
Ripple's Regulatory Landscape
The regulatory landscape surrounding Ripple and XRP remains complex. While Ripple reached a reduced $50 million settlement with the SEC in May, Judge Analisa Torres later rejected the joint motion due to procedural matters. The legal saga continues, creating uncertainty for XRP's future.
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