XRP News Today: Volatility Shares Launches First XRP Futures ETF on Nasdaq

Volatility Shares has launched the first-ever XRP futures ETF on the Nasdaq, marking a significant milestone in the cryptocurrency market. The ETF, named XRPI, is part of the Volatility Shares Trust and will invest at least 80% of its net assets in securities tied to XRP, including futures contracts and other derivatives. This move allows investors to track and profit from the price movements of XRP without the need to hold the cryptocurrency directly.

The XRPI ETF, which was disclosed in its prospectus on May 21, is designed to provide investors with exposure to the daily price movements of XRP. This ETF is the first of its kind, offering a 1x exposure to XRP futures. In addition to the XRPI ETF, Volatility Shares has announced plans to introduce a 2x leveraged XRP futures ETF. This product will double the daily price exposure of XRP, meaning that on a day when XRP increases by 1%, the ETF aims to gain 2%. However, leveraged products come with higher risks due to the use of leverage.

This launch comes at a time when XRP futures contracts are now live on the Chicago Mercantile Exchange (CME). On the first day of trading, $1.5 million worth of XRP futures were traded, indicating growing institutional interest in the cryptocurrency. These contracts allow investors to gain or lose based on the value of XRP without physically owning any tokens, providing a more traditional financial method for institutional investors to engage with digital currencies.

To attract more investors, Volatility Shares has implemented a fee waiver agreement that keeps fund expenses at 0.94% through May 2026. This is lower than the industry standard management fee of 1.15%, making the ETF more competitive in the market. The use of a Cayman Islands subsidiary helps the fund comply with U.S. regulations and allows investors to manage their non-U.S. taxable income more effectively.

The introduction of the XRPI ETF by Volatility Shares signifies a growing institutional interest in cryptocurrency. As more institutions adopt XRP for overseas transfers, this ETF can help bring further mainstream use to the cryptocurrency. The upcoming 2x leveraged ETF also provides active traders with an opportunity to earn faster profits, albeit with higher risks. This development shows that traditional finance is becoming more open to cryptocurrency, integrating it into more conventional investment products.