Leading investment company Volatility Shares is gearing up to launch the first-ever XRP futures exchange-traded fund (ETF).
Bloomberg ETF analyst Eric Balchunas confirmed that Volatility Shares will debut the first-ever 1x XRP futures ETF today, May 22, 2025. Notably, shares of Volatility’s XRP futures ETF will trade on the Nasdaq exchange under the ticker XRPI.
Fee Structure
In an amended filing submitted yesterday, Volatility Shares provided fresh details about the product, including its management and operational fees. Investors seeking to gain exposure to XRP through Volatility’s XRP futures ETF would be required to pay a management fee of 1.15% per annum.
Notably, the investment company capped the operational fee at 1.15%. However, it introduced a fee waiver of 0.21%, allowing investors to pay an operational fee of 0.94% through May 22, 2026.
Other Notable Details
According to the latest filing, the fund will invest in cash-settled XRP futures contracts. This indicates an agreement to pay or receive cash based on XRP’s price at the expiration of the contract.
To continuously maintain the ETF’s exposure to XRP, Volatility Shares intends to close the contracts upon nearing expiration and replace them with new, longer-dated futures. Further, a minimum of 80% of the fund’s assets will be invested in XRP-linked assets, like XRP-referenced swaps and futures, as well as spot-based XRP ETFs.
First-Ever XRP Futures ETF
Commenting on the development, Balchunas referred to the upcoming product as the first-ever XRP futures ETF.
He acknowledged that while market participants have seen 2x XRP futures in the past month, which offers twice the token’s daily performance, the Volatility Shares fund would be the first 1x XRP ETF in the market.
In addition to XRPI, Volatility Shares is launching a 2x XRP ETF on Nasdaq, and shares of this fund are expected to trade on the Nasdaq exchange.
Balchunas Expects Strong Demand for XRPI
Meanwhile, the Bloomberg Intelligence analyst anticipates strong demand for Volatility Shares’ XRPI ETF. He made the assertion based on the performance of Teucrium’s 2x Long Daily XRP ETF (XXRP), which debuted last month.
Recall that XXRP registered a volume of $5 million on its debut on April 9. Balchunas confirmed that its trading volume has skyrocketed to $35 million daily. It currently has $120 million in assets under management (AUM).
Following XXRP’s incredible performance, Balchunas suggested that XRPI would also see massive demand once it launches.
VolatilityShares is launching the first-ever XRP futures ETF tomorrow, ticker $XRPI.. yes there is a 2x XRP already on market (this is first 1x) and it has $120m aum and trades $35m/day. Good signal that there will be demand for this one. pic.twitter.com/rCooyNZgu0
— Eric Balchunas (@EricBalchunas) May 21, 2025
Institutional Interest in XRP Soars
In the meantime, institutional interest in XRP has continued to soar in recent times, with several firms seeking to launch investment products tied to the token.
While the SEC has approved the launch of multiple XRP futures, the regulator has yet to give its blessings for the rollout of the spot version.
At the moment, there are more than 10 XRP spot ETF applications on the SEC’s desk. However, the SEC has not approved any for launch. Earlier this week, the regulator delayed its decision on two of these applications, the Grayscale XRP Trust and 21Shares XRP ETF Trust.
Despite the delay, crypto enthusiasts are optimistic that the SEC will approve the launch of these spot-based XRP ETFs later this year.
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