The world of digital assets just took a significant leap toward mainstream finance with the launch of the first U.S.-listed XRP futures ETF. Volatility Shares introduced XRPI, an exchange-traded fund that tracks XRP futures on a 1:1 basis, now trading on the Nasdaq under the ticker XRPI as of May 22, 2025. This marks a pivotal moment for investors seeking regulated exposure to XRP without the complexities of holding cryptocurrency directly.
Alongside XRPI, Volatility Shares also launched XRPT, a leveraged ETF designed to deliver twice (2x) the daily performance of XRP before fees. These new financial instruments open doors for both retail and institutional investors who want to gain exposure to XRP through familiar, SEC-registered investment vehicles.
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Understanding the XRP Futures ETF: What Is XRPI?
The Volatility Shares XRP Futures ETF (XRPI) is structured to provide investors with long-term exposure to the price movements of XRP via futures contracts. Unlike buying XRP on a crypto exchange, this ETF eliminates the need for digital wallets, private keys, and self-custody responsibilities. Instead, it operates within the traditional financial system, making it accessible through standard brokerage accounts.
XRPI comes with a gross expense ratio of 1.15%. However, thanks to temporary fee waivers, investors currently pay a reduced net expense ratio of 0.94%. The fund intends to allocate at least 80% of its assets into XRP futures and other XRP-linked investment products, ensuring strong correlation with the underlying asset’s performance.
As a fully SEC-registered ETF, XRPI offers transparency, regulatory oversight, and ease of trading—key advantages over direct crypto ownership. Investors can buy and sell shares throughout the trading day just like any stock or traditional ETF, all while avoiding common crypto-related risks such as exchange hacks or tax reporting complications.
How to Buy Shares in the XRPI ETF
Purchasing shares in the XRPI ETF is straightforward for anyone with access to a U.S. brokerage account:
- Open or log in to your brokerage account – Platforms like Fidelity, Charles Schwab, E*TRADE, and Robinhood support Nasdaq-listed securities.
- Search for the ticker symbol "XRPI" – You can also look up "XRPT" if you're interested in the leveraged version.
- Place your trade – Choose between market or limit orders based on your strategy.
- Monitor your investment – Track performance through your broker’s dashboard.
It's important to note that individual investors cannot purchase shares directly from the fund unless they are authorized participants buying large blocks known as Creation Units. For most people, secondary market trading is the only option—and it's perfectly efficient for building a position.
Market Dynamics: Premiums, Discounts, and Bid-Ask Spreads
Since XRPI trades on an exchange, its market price may deviate from the fund’s Net Asset Value (NAV). When demand is high, shares can trade at a premium (above NAV); when demand is low, they may trade at a discount (below NAV). These fluctuations are driven by real-time supply and demand dynamics.
Additionally, traders should be aware of the bid-ask spread—the difference between what buyers are willing to pay and what sellers are asking for. A narrow spread typically indicates high liquidity, while a wide spread can increase transaction costs, especially for frequent traders.
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XRP Price Reaction: A 2% Surge Post-Launch
The launch of the XRPI ETF had an immediate impact on XRP’s market performance. Within 24 hours of trading commencement, XRP’s price rose over 2%, climbing from $2.35 to $2.45. Trading volume surged past $4.58 billion, signaling strong investor interest.
Bloomberg senior ETF analyst Eric Balchunas described the development as a “market first,” emphasizing its potential to pave the way for additional XRP-based financial products in the future. This kind of institutional validation could further boost confidence in XRP as a legitimate digital asset class.
Key Risks and Considerations
While the XRPI ETF offers a convenient gateway to XRP exposure, it’s essential to understand the associated risks:
- Volatility: XRP and its futures are highly volatile. Prices can swing dramatically in short periods—sometimes dropping to zero.
- Leverage Risk (for XRPT): The 2x leveraged XRPT amplifies both gains and losses. It’s best suited for short-term traders with risk tolerance.
- Regulatory Uncertainty: Although the ETF is SEC-registered, ongoing legal scrutiny around XRP’s classification could influence long-term value.
- Tracking Error: Futures-based ETFs may not perfectly mirror spot prices due to roll costs and market structure differences.
Van Dell, co-founder of Black Swan Capitalists, cautions that such ETFs might benefit Wall Street institutions more than retail investors, highlighting structural advantages held by large players in futures markets.
Frequently Asked Questions (FAQs)
What is the XRPT ETF?
XRPT is a leveraged exchange-traded fund launched by Volatility Shares that aims to deliver 2x the daily return of XRP before fees. It's designed for active traders seeking amplified exposure but carries higher risk due to leverage.
How did XRP’s price react after the ETF launch?
XRP’s price increased by over 2%, rising from $2.35 to $2.45 within 24 hours of the ETF’s debut. Trading volume spiked above $4.58 billion, reflecting strong market sentiment.
Is an XRP ETF suitable for all investors?
Not necessarily. While XRPI offers regulated access to XRP, it's best suited for those comfortable with digital asset volatility. Leveraged options like XRPT are generally inappropriate for long-term or conservative investors.
Does investing in XRPI mean I own actual XRP?
No. XRPI invests primarily in XRP futures contracts, not physical XRP tokens. You gain economic exposure without direct ownership or custody responsibilities.
Can I trade XRPI outside the U.S.?
Currently, XRPI is listed on Nasdaq and available through U.S.-based brokerages. International investors may access it depending on their local regulations and brokerage offerings.
How does this ETF impact the broader crypto market?
As the first XRP futures ETF, XRPI sets a precedent for future crypto-linked financial products. It signals growing institutional acceptance and could encourage similar launches for other altcoins.
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Final Thoughts: A New Chapter for XRP Investing
The introduction of the XRPI ETF represents a milestone in bridging traditional finance with digital assets. By offering a regulated, accessible, and secure way to invest in XRP, Volatility Shares has lowered the barrier to entry for millions of investors who previously avoided crypto due to complexity or risk.
However, as with any emerging financial product, due diligence is crucial. Investors should assess their risk tolerance, understand how futures-based ETFs work, and stay informed about regulatory developments surrounding XRP.
Whether you're a seasoned trader or new to digital assets, the rise of crypto ETFs like XRPI underscores one clear trend: the future of investing is converging across markets.
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