In a significant stride for cryptocurrency’s integration into mainstream finance, Volatility Shares has unveiled the first U.S.-based XRP futures exchange-traded fund (ETF), trading under the ticker XRPI on the Nasdaq . This ETF offers investors a one-to-one exposure to XRP’s price movements through futures contracts, eliminating the need to directly hold the cryptocurrency. With a gross expense ratio of 1.15% and a net expense ratio of 0.94% after fee waivers, XRPI aims to provide a more accessible and regulated avenue for both retail and institutional investors to engage with XRP.

The fund’s strategy involves allocating at least 80% of its assets to XRP futures contracts and shares of other XRP-linked exchange-traded products. This approach is designed to offer investors exposure to XRP’s price dynamics without the complexities associated with direct cryptocurrency ownership, such as managing digital wallets or navigating unregulated exchanges.

Volatility Shares is also planning to introduce a leveraged 2x XRP futures ETF, which would amplify daily returns by two times, catering to investors with a higher risk tolerance. This move positions Volatility Shares alongside Teucrium, which launched its own 2x leveraged XRP futures ETF (XXRP) in April. Teucrium’s XXRP has garnered significant attention, amassing $121 million in assets under management, indicating a robust demand for XRP-linked investment products.

The launch of XRPI coincides with a growing institutional interest in XRP. The Chicago Mercantile Exchange (CME) recently introduced XRP futures contracts, further legitimizing XRP’s presence in traditional financial markets. Additionally, the U.S. Securities and Exchange Commission (SEC) is reviewing proposals for spot XRP ETFs from firms like Franklin Templeton and Bitwise, with decisions anticipated in the coming months.

Market analysts suggest that the introduction of XRPI could serve as a catalyst for broader adoption of XRP. By providing a regulated and straightforward investment vehicle, XRPI may attract investors who were previously hesitant to engage with cryptocurrencies due to regulatory uncertainties or technical barriers. As XRP continues to gain traction in both the crypto and traditional finance sectors, the launch of XRPI represents a pivotal moment in its journey toward mainstream acceptance.

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