Volatility Shares Launches XRP Futures ETF on Nasdaq, the First 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

Volatility Shares is launching the first-ever XRP futures ETF today on the Nasdaq.

The exchange-traded fund, part of the Volatility Shares Trust will invest indirectly 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, which will trade under the ticker XRPI, to invest at least 80% of the value of its net assets in XRP-linked instruments.

Volatility Shares is also planning 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, according to Bloomberg Intelligence analyst Eric Balchunas.

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.

“Good signal that there will be demand for this one,” he said in reference to VolatilityShares’ new ETF.

The SEC's greenlight for spot ETFs for Bitcoin and Ethereum in 2024 has sparked an intense scramble for crypto's third-place ETF slot.

XRP backers have reason for optimism. On May 19, the Chicago Mercantile Exchange launched XRP Futures and Micro XRP Futures, marking the first time the derivatives giant will offer contracts linked to XRP.

These will allow traders to speculate on XRP’s price without needing to hold 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 cryptocurrencies is expanding rapidly, and market participants are seeking out regulated derivatives products across a wider range of tokens to manage that risk or generate returns in a format that suits their own specific needs,” CME’s head of crypto products, Giovanni Vicioso said in a statement announcing the offerings.

Franklin Templeton, 21Shares, and Bitwise are among issuers applying 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.

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 at this juncture. They've already approved two, and they're quickly becoming quite popular with investors. They're also quite useful for managing bitcoin and ether price risk, which is something the SEC cares about deeply,” ETF Store president Nate Geraci said.