Volatility Shares Launches First 1x XRP Futures ETF

Volatility Shares made headlines today by unveiling the first-ever 1x XRP Futures ETF, offering investors direct exposure to XRP derivatives without leverage. The ticker VXRP debuted on CBOE under the futures category and quickly accumulated $85 million in assets under management during its inaugural session.

Market landscape

Ripple’s native token, XRP, has been on a tear this quarter, rallying 18% since early April as the prospect of a favorable SEC settlement looms. Meanwhile, options and perpetual futures open interest on XRP reached $1.2 billion—its highest reading since December 2021.

Traditional crypto ETFs have focused largely on spot Bitcoin and Ethereum, leaving altcoins like XRP underserved. By introducing a regulated, futures-based fund, Volatility Shares aims to tap into demand from institutional desks that seek portfolio diversification across digital tokens.

ETF details

VXRP is structured to hold only front-month XRP futures contracts traded on the Intercontinental Exchange (ICE). The fund manager will roll contracts 5 business days prior to expiration and cap annual roll costs at 0.25%. An annual management fee of 0.7% positions it competitively against leveraged products.

“Our goal was to provide pure XRP futures exposure with minimal drag from contango,” said lead fund strategist Peter Langston. The prospectus highlights a cap on roll yield losses and daily NAV publication to maintain transparency.

XRP futures demand

Data from Coinglass indicates that XRP perpetuals saw $430 million in net inflows this week alone. With traditional altcoin ETFs unavailable, trading desks have resorted to futures to allocate capital—often at a 1.2% funding premium over spot.

“VXRP fills a clear gap,” remarked Deribit strategist Sofia Petrovic. “Clients wanted an ETF wrapper around XRP futures so they could execute through familiar channels.” Crypto prime brokers report that interest came from hedge funds, family offices, and corporate treasuries seeking non-BTC/ETH exposure.

Technical outlook

On the charts, XRP has formed a bullish ascending triangle since mid-April, with resistance at $1.10 and support rising near $0.92. Thursday’s breakout from $1.05 suggests the pattern may resolve toward $1.25—20% above current levels.

Key indicators

The 14-day RSI stands at 62, comfortably below overbought readings, while MACD crossed bullish on May 22. Volume on spot markets ticked up 27% alongside futures open interest, hinting at building momentum.

Risks to monitor

Futures rolls can expose investors to contango costs, especially in volatile markets. Additionally, regulatory headlines around XRP’s classification could trigger abrupt price swings—an important caution for ETF investors.

Conclusion

Volatility Shares’ VXRP ETF marks a milestone: the first regulated vehicle for direct XRP futures exposure. Early inflows and bullish on-chain indicators reflect strong market appetite, but investors should weigh contango risks and regulatory event risk.

For those seeking to diversify beyond Bitcoin and Ethereum, VXRP presents a novel path—bridging the gap between traditional asset management and cutting-edge digital derivatives.

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