The cryptocurrency market witnessed a historic moment on Thursday, May 22, 2025, as the Volatility Shares XRP ETF (XRPI) became the first U.S.-based exchange-traded fund (ETF) tracking XRP futures on a one-to-one basis to begin trading on the Nasdaq exchange.
This landmark launch marks a significant step forward for Ripple’s XRP, reinforcing its growing institutional acceptance and fueling optimism within the vibrant XRP community.
With a net expense ratio of 0.94% and a strategic investment approach, the XRPI ETF is poised to reshape the landscape for XRP investors.
Below, we explore the details of this ETF, its implications for the crypto market, and the overwhelmingly bullish sentiment within the XRP community.
What Is the Volatility Shares XRP ETF (XRPI)?
The Volatility Shares XRP ETF, trading under the ticker XRPI, is designed to provide investors with exposure to XRP futures contracts without the complexities of directly owning or managing the cryptocurrency.
According to the fund’s prospectus, at least 80% of its assets will be invested in XRP futures contracts and shares of other XRP-linked exchange-traded products (ETPs).
The ETF carries a gross expense ratio of 1.15%, reduced to a net expense ratio of 0.94% after fee waivers, making it a cost-effective option for investors seeking exposure to XRP’s price movements.
The fund operates by indirectly investing in XRP futures through a wholly-owned subsidiary based in the Cayman Islands, a structure that enhances operational efficiency while adhering to U.S. regulatory frameworks.
Unlike spot ETFs, which hold the underlying asset directly, the XRPI ETF tracks XRP futures contracts, offering a regulated and accessible way for institutional and retail investors to gain exposure to XRP’s price volatility.
Volatility Shares has also announced plans for a 2x leveraged XRP futures ETF, signaling growing interest in amplified exposure to XRP’s market movements.
The launch follows the successful debut of XRP futures on the Chicago Mercantile Exchange (CME) on May 19, 2025, which recorded over $19 million in notional trading volume on its first day and $10 million the following day.
These cash-settled contracts, available in standard (50,000 XRP) and micro (2,500 XRP) sizes, are benchmarked to the CME CF XRP-Dollar Reference Rate, providing a robust foundation for the XRPI ETF.
A Growing Wave of XRP ETFs
The XRPI ETF is not an isolated development. Earlier in April 2025, Teucrium Investment Advisors launched the 2x Long Daily XRP ETF (XXRP), which achieved $5 million in trading volume on its debut, marking it as one of the firm’s most successful launches.
Additionally, ProShares received approval to launch three XRP-tracked ETFs—an Ultra XRP ETF (2x leverage), a Short XRP ETF, and an Ultra Short XRP ETF (-2x leverage)—further expanding the range of XRP-based investment vehicles.
The introduction of these ETFs comes on the heels of significant regulatory clarity for XRP.
Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), which began in December 2020 over allegations that XRP was an unregistered security, concluded in March 2025, clearing major regulatory hurdles.
This resolution has paved the way for increased institutional adoption and the proliferation of XRP-focused financial products.
Moreover, the CME’s launch of regulated XRP futures has been seen as a critical step toward the potential approval of a spot XRP ETF in the U.S. Industry experts, including Nate Geraci, President of the ETF Store, have stated that “spot XRP ETFs are only a matter of time,” citing the precedent set by the SEC’s approval of spot Bitcoin and Ethereum ETFs, which relied on established futures markets.
Currently, nine spot XRP ETF applications, including one from Franklin Templeton, are under SEC review, with a key decision deadline set for June 17, 2025.
The Bullish XRP Community: A Surge of Optimism
The XRP community, often referred to as the “XRP Army,” has erupted with enthusiasm over the XRPI ETF launch, viewing it as a validation of XRP’s long-term potential.
Posts on X reflect this sentiment, with users describing the event as a “power move” and a sign that “XRP has entered the big leagues.”
The community’s bullish outlook is driven by several factors:
- Institutional Validation: The launch of the XRPI ETF, coupled with the CME’s XRP futures and multiple ETF filings, signals growing institutional interest. For years, the XRP community has championed Ripple’s vision of enabling fast, low-cost cross-border payments through the XRP Ledger (XRPL). The ETF’s debut is seen as a milestone that brings XRP closer to mainstream financial markets. One X user, @SMQKEDQG, highlighted the “overwhelming excitement” among institutional investors, noting Teucrium’s CEO describing their XRP ETF launch as the “most successful” in the firm’s history.
- Price Performance and Market Momentum: XRP has shown remarkable resilience, with a 350.95% increase over the past year, despite a recent 5.93% weekly decline. As of May 22, 2025, XRP trades at approximately $2.35 USD, with a market capitalization of $137.5 billion, ranking it as the fourth-largest cryptocurrency. Technical analysts on platforms like TradingView predict new all-time highs, with some forecasting prices as high as $7 within 50 days or even $14–$20 if XRP breaks key resistance levels. The community is particularly excited about XRP’s first-ever “golden cross” against Bitcoin on the weekly chart, a bullish technical indicator signaling potential for significant price appreciation.
- Upcoming Catalysts: The XRP community is buzzing about XRPLAPEX, the largest annual summit for XRP developers, scheduled for June 10–12, 2025, in Singapore. Expectations are high for new product announcements, partnerships, and an updated roadmap for Ripple and the XRP Ledger, which could further drive adoption and price growth. Additionally, the potential for Federal Reserve interest rate cuts in June 2025 is seen as a bullish catalyst, as lower rates historically favor riskier assets like cryptocurrencies, particularly altcoins like XRP.
- Global Developments: Beyond the U.S., the world’s first spot XRP ETF was approved in Brazil by the Comissão de Valores Mobiliários (CVM) in February 2025. Named the HASHDEX NASDAQ XRP FUNDO DE ÍNDICE, this fund is in its pre-operational phase and is expected to debut soon, further boosting global confidence in XRP. The XRP community sees this as a precursor to broader international adoption, with X users like @Xfinancebull noting that “institutional money is positioning” and “liquidity is being locked up.”
Why the XRPI ETF Matters
The launch of the XRPI ETF is more than a financial product debut; it’s a testament to XRP’s evolving role in the global financial ecosystem. Here are key reasons why this ETF is a game-changer:
- Accessibility for Investors: The ETF provides a regulated, user-friendly way for both retail and institutional investors to gain exposure to XRP without navigating crypto exchanges or managing private keys. This is particularly appealing to traditional investors who prefer the familiarity of exchange-traded products.
- Institutional Liquidity: The XRPI ETF has already attracted $121 million in assets under management, a figure that Bloomberg senior ETF analyst Eric Balchunas called a “good signal” of demand. This influx of institutional capital is expected to enhance XRP’s liquidity and price stability.
- Regulatory Precedent: The ETF’s approval and the CME’s XRP futures launch strengthen the case for a spot XRP ETF. The SEC has historically required a robust futures market as a prerequisite for spot ETF approvals, as seen with Bitcoin and Ethereum. Traders on Polymarket estimate a 77% chance of spot XRP ETF approval in 2025, though odds before July 31 are lower at 35%.
- Market Confidence: The ETF’s launch comes at a time when XRP’s market performance is strong, with a 1.9% market cap growth in Q1 2025, outperforming Bitcoin, Ethereum, and Solana. The XRP Ledger’s daily active addresses have also surged, reflecting growing network adoption.
Challenges and Considerations
Despite the bullish sentiment, investors should be aware of potential risks.
The XRPI ETF, like all futures-based ETFs, is subject to rollover costs and contango, which can erode returns over time if futures prices are higher than spot prices.
Additionally, the ETF is designed for short-term trading, not long-term holding, as emphasized by Teucrium’s CEO for its XXRP ETF: “This is absolutely a short-term trading tool—ideally for one day.”
Moreover, while Ripple’s legal battle with the SEC has concluded, ongoing regulatory uncertainty in the U.S. crypto market could impact future ETF approvals.
Investors should also consider XRP’s historical volatility.
The Road Ahead for XRP
The launch of the XRPI ETF is a pivotal moment for XRP, reinforcing its position as a leading cryptocurrency for institutional investors.
The XRP community’s bullish sentiment is palpable, driven by institutional adoption, technical bullishness, and upcoming catalysts like XRPLAPEX and potential spot ETF approvals.
As one X user, @MerlijnTrader, put it, “You’re witnessing history. $XRP just entered the big leagues.”
For investors, the XRPI ETF offers a regulated gateway to participate in XRP’s growth, while the XRP community sees it as a stepping stone toward broader adoption and price appreciation.
As Ripple continues to innovate on the XRP Ledger—supporting use cases like cross-border payments, DeFi, and soon NFTs—the future looks bright for XRP and its passionate supporters.
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