- Volatility Shares launches first XRP futures ETF on Nasdaq.
- ETF invests 80% in XRP-linked securities via Cayman subsidiary.
- The upcoming 2x leveraged ETF doubles daily XRP price exposure.
In a major development for the cryptocurrency market, Volatility Shares has launched the first-ever XRP futures ETF on the Nasdaq. Volatility Shares Trust includes the exchange-traded fund (ETF) XRPI. It will make investments in XRP futures by using a company based in the Cayman Islands. This decision allows investors to follow and profit from shifts in the price of XRP without needing to hold any.
Volatility Shares to Introduce 2x Leveraged XRP Futures ETF
The XRPI ETF disclosed in its prospectus on May 21 that it will invest at least 80% of its net assets in securities tied to XRP. Futures contracts and a range of other derivatives may also be part of this category. According to CoinMarketCap, XRP is valued at around $2.43, rising by 3% in the last 24 hours.
Besides this existing ETF, Volatility Shares has stated it will introduce a 2x leveraged XRP futures ETF. This product will allow investors to see twice the daily change in XRP prices. Basically, the ETF would aim to gain 2% on a day when XRP goes up by just 1%. Yet, these products involve more risk since leverage is used.
Bloomberg Intelligence analyst Eric Balchunas explains that this is the first 1x XRP futures ETF available today. He took to X (which used to be Twitter) for this update. Balchunas also pointed out that a leveraged ETF for XRP already exists. April saw the arrival of this new product, developed by Teucrium, based in Vermont. It is responsible for assets worth $120 million and trades about $35 million a day. For this reason, analysts think that many people will want to buy Volatility Shares’ new fund.
Moreover, XRP futures contracts are now live on the CME, the Chicago Mercantile Exchange. On the opening day for trading, $1.5 million worth of XRP futures were traded. With these contracts, investors earn or lose based on the value of XRP without physically owning any tokens. Because of this, institutional investors who want to invest in digital currencies can do so using more traditional financial methods they are familiar with.
New XRP ETF Signals Growing Institutional Interest in Crypto
To get more investors interested, fund expenses on Volatility Shares will remain at 0.94% through May 2026 thanks to a fee waiver agreement. A fee of 1.15% is the industry standard for management. The approach used in the ETF’s design and fee model proves an attempt to contend with various crypto investment products already on the market.
Further, using a Cayman Islands subsidiary helps the fund stick to the U.S. regulations. It also helps investors avoid issues while controlling their non-U.S. taxable income as an investment company.
The introduction of the XRPI ETF by Volatility Shares is an important step for crypto-related financial products. As more institutions choose XRP for overseas transfers, the launch of this ETF can help bring further mainstream use. Furthermore, the upcoming ETF provides active traders aiming for faster profits an opportunity to earn more, despite the higher danger. By doing this, traditional finance is showing markets that it is more open to cryptocurrency.
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