Volatility Shares will debut its XRP futures ETF on the Nasdaq today, the first ever such product.
The exchange-traded fund, part of the Volatility Shares Trust, will indirectly invest in the Ripple-linked token’s futures via its Cayman Islands subsidiary, according to a filing with the Securities and Exchange Commission on May 21.
The company said it plans for the ETF, with the ticker $XRPI, to invest at least 80% of the value of its net assets in XRP-linked instruments.
Volatility Shares also plans to launch a 2x XRP futures ETF that promises twice the daily price appreciation of XRP through double the leveraged exposure to XRP futures.
The so-called 1x fund is a market first, Bloomberg Intelligence analyst Eric Balchunas said on X.
Vermont-based investment firm Teucrium already launched a turbocharged 2x XRP product back in April.
That double leveraged ETF has assets under management of $120 million and trades $35 million per day, Balchunas said.
That’s a “good signal that there will be demand for this one,” he said in reference to VolatilityShares’ new ETF.
The SEC greenlighted spot ETFs for Bitcoin and Ethereum in 2024, and the scramble for crypto’s third-place ETF slot has been intense ever since.
XRP backers have reasons for optimism. On May 19, the Chicago Mercantile Exchange launched XRP Futures and Micro XRP Futures, marking the first time the derivatives giant has offered contracts linked to XRP.
These allow traders to speculate on XRP’s price without holding the token itself — a key difference from spot ETFs, which are backed directly by the underlying asset and seen as the holy grail for mainstream adoption.
“Interest in XRP has steadily increased,” CME’s head of crypto products, Giovanni Vicioso said in a statement announcing the offerings, adding that market participants are increasingly looking to “regulated derivatives products across a wider range of tokens.”
Franklin Templeton, 21Shares, and Bitwise are among issuers vying to launch spot XRP ETFs.
Moreover, the SEC’s new chair Paul Atkins is seen as a clear break from former chair Gary Gensler, who was openly antagonistic against the crypto industry. Under Gensler’s stewardship the agency blocked several altcoin ETF applications.
Atkins is a long-term supporter of digital assets and is expected to be more liberal in his approach to crypto.
Polymarket punters put the chances of a spot XRP ETF being approved this year at 83%.
“I simply don’t see this SEC not approving spot XRP ETF,” Nate Geraci, president of the ETF Store, said in April.
Trista Kelley is DL News’ Editor in Chief. Got a tip? Email at [email protected].
