Wall Street Finally Catches Up: Volatility Shares Debuts First 1x XRP Futures ETF

Brace for impact—the ETF arms race just got crypto-weird. Volatility Shares is rolling out the first-ever XRP futures ETF, giving traders a 1x leveraged shot at Ripple’s embattled token without touching the actual asset. Because why own the drama when you can bet on it?

The Naked Truth About Synthetic Exposure

This isn’t your grandpa’s spot Bitcoin ETF. The product tracks CME futures contracts—a classic Wall Street move to package volatility as an ’investment product’ while avoiding SEC scrutiny over actual token custody. Clever? Absolutely. Risky? Like betting on a coin flip during an earthquake.

Regulatory Dodgeball at Its Finest

Timing’s everything: the launch comes as XRP’s legal limbo enters year five. The ETF structure bypasses securities laws by using derivatives—a loophole so transparent it’d make a DeFi dev blush. But hey, if the product flops, at least the prospectus warnings will be comedy gold.

Memo to traditional finance: your late-stage crypto FOMO is showing. But for degenerates who think ’settlement risk’ is a dating term? Place your bets.

• Volatility Shares introduces XRPI ETF on May 22, providing 1x unleveraged exposure to XRP futures.
• Tectrium’s 2x XRP ETF has $120M in AUM and an average daily trading volume of $35M.
• XRP at $2.25; 236.9M XRP ($567M) transferred from Kraken, prompting volatility.

Industry-leading investment firm Volatility Shares will launch the crypto space’s very first XRP futures ETF on May 22. The cutting-edge financial instrument, known as the XRPI ETF, will provide 1x exposure to XRP futures and represents an important breakthrough in the development of institutional XRP investment.

Bloomberg analyst Eric Balchunas confirmed the development via a recent X post. He highlighted that although a 2x Leveraged XRP futures ETF already exists, this will be the first unleveraged alternative. The 1x exposure product offers more conservative traders a lower-risk option to engage in XRP’s volatility.

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

Volatility Shares Plans Unleveraged XRPI ETF

Balchunas reported that the already established 2x Long Daily XRP ETF from Tectrium has attracted $120 million in assets and registers $35 million daily volume. The numbers indicate strong investor demand, and hence good market conditions for Volatility Shares’ issuance of the unleveraged XRPI ETF.

The XRPI ETF is expected to gain traction among institutional and retail investors looking for direct XRP futures exposure without the risk amplification associated with leveraged products.  Balchunas added that the action represents a key step toward wider mainstream acceptance of XRP-based investment funds.

By offering exposure tied directly to XRP market performance, Volatility Shares positions itself at the forefront of a new wave of digital asset innovation. This ETF could be a springboard toward even more comprehensive XRP investment instruments soon.

While futures-based products advance, regulatory progress on spot XRP ETFs remains slow. The U.S. Securities and Exchange Commission (SEC) recently postponed decisions on two spot XRP ETF proposals from asset managers 21Shares and Franklin Templeton.

The SEC’s new deadline for a ruling is June 17, 2025. This delay continues a pattern of extensions as the SEC evaluates risks and market preparedness for crypto spot ETFs.

Despite the postponement, Optimism is rising Polymarket shows over 80% of traders expect spot ETF approval within 2025.

XRP Price Holds Strong Amid Whale Activity

Meanwhile, XRP’s price is holding steady at $2.25, having bounced from the macro 0.382 Fibonacci level. Market analyst CasiTrades noted that the $1.90 support held cleanly, and although $2.375 presents resistance, the $2.25 level remains a pivotal zone for maintaining the bullish outlook.

A whale transaction of 236.9 million XRP ($567 million) occurred recently, with funds were transferred from Kraken to an unspecified wallet. It raised speculation on possible volatility, although experts concur that until XRP breaks through the $2.69 macro resistance level, targets on the downside around $1.50 remain technically accurate.

Read More: XRP Ledger (XRPL) Activity Surges 142% While Market Cap Climbs to $121B