XRP News Today: XRP Futures ETF Begins Trading on Nasdaq with 1.15% Gross Expense Ratio

The first-ever U.S.-based exchange-traded fund (ETF) tracking XRP futures on a one-to-one basis started trading on the Nasdaq exchange on Thursday. The Volatility Shares XRP ETF (XRPI) has a gross expense ratio of 1.15% and a net expense ratio after fee waivers of 0.94%.

The fund will invest at least 80% of its assets in XRP futures contracts and shares of other XRP-linked exchange-traded products (ETPs), according to a prospectus. This innovative approach provides investors with exposure to XRP without the complexities of directly holding the cryptocurrency. The ETF is structured as a wholly-owned subsidiary based in the Cayman Islands, which allows it to indirectly invest in XRP futures.

Volatility Shares also plans to launch a leveraged 2x XRP futures ETF, which would join the Teucrium (XXRP), which opened for business in April. This move follows the successful launch of a similar 2x futures fund by Vermont-based Teucrium Investment Advisors, which has recorded significant trading volumes and assets under management.

The introduction of the XRPI ETF on Nasdaq is expected to attract more institutional investors to the XRP market, potentially driving further innovation and growth in the cryptocurrency ETF space. This development is particularly noteworthy given the ongoing legal battle between Ripple, the company behind XRP, and the Securities and Exchange Commission (SEC). The court's denial of a settlement motion in this case highlights the regulatory challenges faced by the cryptocurrency industry.

The launch of the XRPI ETF signals a growing institutional interest in cryptocurrencies and a demand for regulated investment products that track digital assets. As the regulatory environment for digital assets continues to evolve, the launch of the XRPI ETF represents a significant step forward in providing investors with regulated and transparent investment options in the cryptocurrency market. This ETF is part of the Volatility Shares Trust and is designed to provide investors with a non-leveraged way to track the price movements of XRP, the fourth-largest cryptocurrency by market capitalization.