VolatilityShares To Launch Latest XRP Futures ETF, Will Price Hit ATH?

VolatilityShares is set to make history by unveiling the first standard (1x) XRP futures exchange-traded fund ETF) in the crypto space.

This will track XRP futures and is under the ticker XRPI. A Bloomberg Senior ETF analyst, Eric Balchunas, shared the news on his X page.

XRPI Aims to Capitalize on Growing ETF Appetite

As per the post, although a 2x leveraged XRP already exists in the market, this new ETF is a 1x product. It will track the daily performance of XRP without leverage.

VolatilityShares, as the issuer, intends to expose holders to XRP through a futures contract without investors holding the actual coin.

According to Balchunas, this new ETF is anticipated to gain traction, given the performance of the previous 2x XRP fund.

Notably, the 2x XRP already has $120 million in assets under management (AUM) with an average daily trade volume of $35 million.

The number suggests that XRP is a strong asset for ETFs and indicates investor interest in XRP-related products in the crypto space.

The new product, which will debut on May 22, may appeal to investors who are less inclined to accept the volatility of leveraged products.

Interestingly, this new product can further help Ripple gauge the adoption of the coin as an asset class among institutional investors.

Additionally, given the legal battle that has trailed XRP for almost five years, this ETF is a good way to redeem its image in the eyes of potential investors.

Perhaps more importantly, this could add “approval pressure” on the Securities and Exchange Commission (SEC).

The SEC might have to act on and pay attention to the applications for spot XRP ETFs filed before it.

Will BlackRock File for ETF Amid Surging XRP Interest?

Several asset managers in the broader crypto industry have filed for a spot XRP ETF and are awaiting the SEC’s decision.

Bitwise, one of the world’s largest crypto fund managers, submitted the first application for an XRP ETF with the SEC on October 2, 2024.

The list of applicants includes ProShares, 21Shares, and Canary Capital among others.

However, industry giant BlackRock has yet to file for an XRP ETF.

According to SMQKE, a popular crypto analyst on X, BlackRock may have adopted a “wait and see” strategy.

The analyst believes there is still an air of regulatory uncertainty surrounding XRP despite the court’s ruling that the coin is not a security.

The recent delays by the SEC in deciding on the applications before it support SMQKE‘s assertion.

He believes BlackRock is delaying filing for an XRP ETF until the regulatory environment is more predictable and stable.

SMQKE is optimistic that BlackRock could join the ETF race when the timing is right in the long term.

The company’s focus on scaling its Bitcoin and Ethereum ETFs marks a positive development in its attitude toward crypto.

XRP Price All-Time High Within Reach?

The recent development in the XRP ecosystem signals a critical step towards mainstream institutional adoption.

If the regulatory authority finally approves an XRP ETF, it could deepen interest and gradually fuel a price increase.

As of this writing, XRP price was trading at $2.38, representing a 1.44% increase in the last 24 hours. The coin earlier hit a peak of $2.43 before recording a slight correction.

Despite the drop, investors remain active, as trading volume jumped up by 29.26% to $3.75 billion.

A signal that the delays by the SEC in deciding ETF applications have not negatively impacted investor confidence.

Some market participants remain optimistic that XRP could surpass its all-time high of $3.8, set in January 2018, if the current momentum persists in the long term..