Volatility Shares to debut first-ever XRP futures ETF tomorrow

Volatility Shares is set to launch the first-ever XRP futures ETF in the US tomorrow, according to a post-effective amendment filed with the SEC on May 21. The launch was confirmed by Bloomberg ETF analyst Eric Balchunas.

The fund, structured as part of the Volatility Shares Trust, will trade on Nasdaq under the ticker XRPI.

In addition to this product, Volatility Shares is also rolling out the Volatility Shares 2X XRP ETF (XRPT), which is designed to deliver twice the daily performance of XRP through leveraged exposure to XRP futures.

With the new offerings, Volatility Shares will join Teucrium Investment Advisors in offering investment products tied to XRP, Ripple’s native asset.

Last month, Teucrium launched the Teucrium 2x Long Daily XRP ETF aiming to offer returns double those of XRP’s daily movements.

According to Balchunas, Teucrium’s leveraged XRP ETF currently manages approximately $120 million in assets and averages $35 million in daily trading volume.

“Good signal that there will be demand for this one,” the expert said.

The fund will invest in cash-settled XRP futures contracts and aims to deliver returns that track the price movements of XRP.

Volatility Shares will serve as the investment adviser and charge a management fee of 1.15%, though expenses are capped at 0.94% through May 2026 due to a fee waiver agreement.

To maintain its regulated investment company status, the fund will invest in XRP futures through a wholly-owned Cayman Islands subsidiary. The fund will invest at least 80% of its assets in XRP-linked instruments, including futures contracts and potentially other derivatives.

This comes as efforts to expand XRP-based investment products continue. ProShares was expected to launch three XRP futures ETFs in late April, but the SEC has yet to approve them. Yesterday, the agency also delayed decisions on proposed spot XRP ETFs from Grayscale and 21Shares.

As ProShares awaits clarity from the SEC, other XRP futures products include Coinbase’s CFTC-regulated XRP contracts, as well as CME’s XRP futures, which debuted on Monday with $19 million in first-day volume, highlighting growing market appetite for XRP exposure.

Ripple, the issuer of XRP, has faced major regulatory hurdles many thought would be resolved by now, but its legal saga remains ongoing.

On May 8, Ripple agreed to a reduced $50 million settlement with the SEC, down from the original $125 million. However, Judge Analisa Torres rejected the joint motion on May 15 due to procedural issues, and the case remains under appeal. At press time, XRP is trading at $2.36, little changed on the day.