XRP Is Back in the News as Volatility Shares Prepares to Launch the First-Ever XRP Futures ETF

XRP is back in the news as Volatility Shares prepares to launch the first-ever XRP Futures ETF on May 22, trading under the ticker XRPI.

Volatility Shares is set to launch the first-ever XRP futures ETF on Monday, May 22, according to a recent filing with the U.S. Securities and Exchange Commission (SEC) on Sunday. The fund, which will be trading on Nasdaq and tracks a 1x futures index, is also the subject of new analysis from Bloomberg.

The ETF, which will be investing in XRP futures via a Cayman Islands-based subsidiary, is expected to have at least 80% of its assets related to XRP. Industry analysts, including Eric Balchunas from Bloomberg, are seeing this move as a positive sign of increasing demand from traders and institutions.

“The futures products bring more liquidity to the market and allow for both bullish and bearish positions, making trading more flexible,” Balchunas noted. These steps are also seen as early moves that could eventually lead to a spot ETF for XRP—something the crypto community has been hoping for, especially after Bitcoin’s ETF success.

The fund, titled Volatility Shares XRP Futures ETF and applying for the ticker XRPI, received approval from the SEC in March. It will be starting on Monday, May 22, and it's capable of holding both CME and BVOL XRP futures.

The ETF will be investing at least 80% of its assets in futures contracts linked to XRP and other related investments, while the remaining 20% can be allocated to cash, U.S. Treasury bills, and short-term investment grade floating rate debt securities.

The ETF will be structured as a grantor trust and will be actively managed by a subsidiary of Volatility Shares. It will also be tracking an index that measures the price movements of XRP futures.

Earlier this month, the CME launched regulated XRP futures and micro XRP futures, with a $19 million volume. However, spot XRP ETF approvals are still pending. Nine spot XRP ETF applications, including one from Wall Street giant Franklin Templeton, are still awaiting SEC approval.

The SEC has delayed decisions on proposed spot XRP ETFs from Grayscale and 21Shares. According to Bloomberg analyst James Seyffart, a realistic timeline for spot XRP ETFs could be in early Q4 this year. The Polymarket prediction platform shows more than 80% chance of XRP ETF approval this year.

The crypto market is up today, as Bitcoin broke out of its previous all-time high. It is currently trading at $111,424, up over 4% in the past day. XRP is also up over 2% and is currently trading at $2.42.

As the first-ever futures ETF linked to XRP, it's a move that could be an important step for the token's future in the market.

Later this year, we'll also be seeing a 2x XRP futures ETF from Volatility Shares, which will provide investors with twice the daily price gains of XRP by using leveraged exposure to XRP futures. A 2x XRP futures (XXRP) was recently launched by Teucrium Investment Advisors on April 8. It traded $5.43 million on its debut.

The Tectrium 2x Long Daily XRP ETF already has $120 million in assets and a massive $35 million daily trading volume.

Earlier this month, ProShares also filed to launch three XRP ETFs: one with 2x leverage (Ultra XRP), one with -2x inverse exposure (UltraShort XRP), and a standard inverse fund (Short XRP), according to its April 15 SEC filing.