Summary XRP ETF offers 1x exposure to XRP via CME futures but does not directly hold XRP, introducing tracking error and underperformance risk. XRP benefits from strong institutional support and recent legal clarity. XRPI's 94bps fee is in line with peers, but liquidity and spread risks impact returns for active traders. Given indirect exposure and alternative investment outlay for cryptocurrencies, I rate XRPI as a Hold for most investors. The Volatility Shares XRP ETF ( XRPI ) is a single-asset investment strategy designed to provide investors with 1x exposure to Ripple ( XRP-USD ) through the investment in CME XRP Futures. Those that are seeking to amplify XRP exposure can consider the Volatility Shares 2x XRP ETF ( XRPT ); however, I recommend reviewing the risks prior to making an investment decision. XRP Background XRP is one of the most heavily traded cryptocurrencies, with recent volumes being in the $11b per day range. XRP Ledger was launched in 2012 as an open-source, permissionless, and decentralized technology designed to enhance transaction speed. XRP has historically received substantial support across financial institutions, aiming to enhance efficiency, reduce transaction time, and offer an alternative for international payment services. XRP recently had a major win against a 2020 legal case by the SEC. At the time, the SEC accused Ripple of selling XRP as an unregistered security. In 2023, a federal judge ruled that XRP sold on public exchanges did not meet the definition of a security. On August 7, 2025, the lawsuit was abandoned with a $125mm fine to the SEC. In general, XRP can be viewed as one of the more viable cryptocurrencies on the market, as the token holds a direct purpose in relation to international banking. With the growing support across the banking and commerce sectors, XRP could potentially realize continued positive price returns going forward. In general, XRP's use across the banking and commerce sectors could create some price support for the cryptocurrency as XRP is utilized for interbank and international money transfers. That being said, the commercial use could potentially flatten growth for the cryptocurrency, as dependable pricing may be necessary for interbank utilization. Background of XRPI XRPI was launched by Volatility Shares on May 22, 2025, as a managed futures strategy designed to track the performance of XRP. Unlike many popular bitcoin ETFs like the iShares Bitcoin Trust ETF ( IBIT ), XRP does not directly hold XRP and solely transacts XRP futures positions. Because the strategy isn't designed to accelerate returns over XRP, XRPI shares may underperform the underlying asset when considering fees and other caveats on futures positions. This can be observed when comparing XRPI to XRP performance since the inception of XRPI. Since the strategy was launched, XRPI has underperformed XRP by roughly 7%. TradingView XRPI pays out a monthly distribution annualized at $0.15/share, yielding 0.7% on a forward basis. In general, XRPI should be used for price returns rather than income. Despite XRPI being a futures strategy, investors can consider the ETF for a longer-term approach to investing in XRP within a standard brokerage account. Seeking Alpha Comparing XRPI to other cryptocurrency ETFs, XRPI is relatively on par in terms of assets under management, liquidity, and fees. XRPI charges a 94bps management fee, in line with peer strategies. In terms of liquidity, XRPI has $165mm in assets under management with an average of 510k shares changing hands on a daily basis. Accordingly, XRPI exhibits some spread risk with the bid/ask spread sitting at 0.16%, effecting a trader's cost-in/cost-out. Risks to Consider for XRPI XRPI is a managed futures strategy and does not directly invest in XRP. This may add certain risks to portfolio liquidity and tracking error when comparing performance to the underlying asset. XRPI may also lose value over time as a result of transaction fees associated with managing futures exposure. Futures positions are settled on a daily basis, meaning that profits and losses determine margin requirements at the end of each trading day. Because of the daily reset, performance may vary when comparing XRPI to the underlying XRP. XRPI is not a diversified investment vehicle and solely invests in XRP futures with cash collateral making up the portfolio. This can create certain exposure risks and should be used by those seeking to actively manage portfolio risk. Though not 1:1, XRP is directionally correlated with bitcoin, offering some diversification in the asset class but not completely disassociated. This can raise certain risks during periods of market stress. TradingView Final Thoughts XRPI can provide indirect exposure to XRP as a managed futures strategy. In general, XRPI may underperform the underlying assets over time as a result of the revolving futures position and the lack of direct exposure to XRP. Given the general correlation to bitcoin, I believe investors must consider whether investing in XRP is appropriate for their alternative asset strategy, or if solely investing in bitcoin for cryptocurrency provides adequate exposure, particularly when considering the lower-cost spot bitcoin ETFs on the market. Given these factors, I am recommending XRPI with a Hold rating.
