Are you ready to trade XRP ETFs?
Following in the footsteps of Bitcoin and Ethereum, Ripple is all set to see futures and spot exchange-traded funds (ETFs) for its native coin, XRP.
The proposals for the first XRP ETFs were filed with the US SEC in October 2024. After the SEC dropped its four-year-long lawsuit against Ripple in March 2025, the future looks bright for both XRP and its ETFs.
The launch of regulated ETFs will give institutional and retail traders a new way to gain exposure to price moves in the cryptocurrency without needing to own, store, or manage the digital currency.
What are XRP ETFs?
An exchange-traded fund (ETF) is an investment vehicle that tracks the performance of a basket of assets, such as commodities or stocks from a specific sector.
Similarly, an XRP ETF tracks the price movement of Ripple’s native token, giving traders a regulated instrument through which to gain exposure to cryptocurrency trading. When you invest in an ETF, you don’t need to buy or own the underlying asset to speculate on its price movements.
Traders can choose from two types of ETFs:
- Futures ETFs
- Spot ETFs
Just like trading spot forex, spot ETFs reflect the real-time price of the underlying asset, in this case, XRP. Futures ETFs, on the other hand, track the value of futures contracts rather than the current price. ETFs are traded on stock exchanges and crypto ETFs, including those of BTC, ETH and XRP, are no different.
ETFs, including those of the Ripple token, are subject to regulatory oversight. This might raise confidence in institutional and retail traders to use this instrument for cryptocurrency trading.
XRP has been riding the bullish crypto wave, fuelled further by news of ETF launches.
The cryptocurrency was up 288.18% in the 12 months to May 2025.
Existing and potential XRP ETFs
Bitwise Asset Management and Canary Capital, two established investment firms, filed their proposals for XRP ETFs with the US SEC in October 2024. The ETFs are expected to be launched by the end of 2025.
ProShares is another firm waiting in the wings to launch its ETFs. While spot ETFs are yet to be approved by the SEC, three futures-based ETFs have been approved from Proshares – Ultra XRP ETF, Short XRP ETF and Ultra Short XRP ETF.
As of May 2025, the only ETF that was operational was Teucrium’s 2x Long Daily XRP ETF (XXRP), launched on April 8.
The ETF aims to provide daily results that reflect 2x of XRP’s daily price performance. Teucrium has announced plans to launch an inverse Ripple ETF so that investors can also capture opportunities from declining XRP prices.
Teucrium’s 2x Long Daily XRP ETF debuted with trading volumes of $5 million. Its performance ranked among the top 5% of ETF launches.
Some of the other asset managers waiting for approval for their XRP ETFs include Franklin Templeton, Bitwise, 21Shares, Grayscale and WisdomTree.
List of available XRP ETFs
As of May 2025
Asset manager
ETF
Teucrium
2x Long Daily XRP ETF
Bitwise Asset Management*
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Canary Capital*
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How will the launch of XRP ETFs impact the cryptocurrency market?
Research published in The Quarterly Review of Economics and Finance reveals that the launch of BTC and ETH ETFs has a positive impact on the cryptocurrency market, leading to a rise in spot prices for Bitcoin, Ethereum and Litecoin.
In addition, market volatility decreased around the launch date of the ETFs. ““The launch of US spot Bitcoin ETFs in January 2024 has attracted more informed market participants to the Bitcoin spot market and possibly led to a change in the composition of its investors,” the study went on to say.
Experts expect similar impacts from the launch of XRP ETFs. They could lead to a rise in demand for the altcoin, increased liquidity, a rise in stability of price discovery, and greater institutional involvement. Market dynamics are likely to change, with new investors being attracted to cryptocurrency trading.
An increase in XRP liquidity would make it easier for traders to buy and sell the crypto at their desired price points. This, in turn, would drive higher trading volumes and reduce price volatility.
This was already observed for the Ethereum coin when ETH ETFs were launched. Also, ETF approvals give legitimacy to XRP as an investment option. When regulatory bodies like the US SEC endorse an asset class, it reduces investor concerns and raises trust. This, again, was observed, following the launch of BTC ETFs, when Bitcoin saw an increase in mainstream adoption.
In fact, regulatory approval may increase the attraction of XRP ETFs as a means of portfolio diversification. This would be especially beneficial for beginners in cryptocurrency trading, since it does not entail the hassle of buying, owning and storing digital currencies. Not just beginners and retail traders but institutional investors would also see these ETFs as a viable option for portfolio diversification.
The launch of ETFs will give retail investors easier access to XRP exposure, with lower technical barriers (eliminating the need to navigate crypto exchanges and wallets), and raise awareness about Ripple and its potential use cases.
Pros and cons of trading XRP ETFs
Like all other tradable instruments, ETFs come with their own set of advantages and disadvantages.
As mentioned earlier, XRP ETFs will ease exposure to the Ripple token, lowering barriers to entry. They also offer a new option for portfolio diversification. These ETFs eliminate the need to navigate the complex arena of crypto exchanges or open crypto wallets, understand the blockchain technology behind them, or keep your wallet keys safe since you don't need to own any XRP to trade this instrument. ETFs are traded just like shares on the stock exchange.
An important benefit of ETFs is that they are regulated instruments, ensuring compliance and security. Beginner traders can even learn on the go while trading cryptocurrency ETFs.
A potential increase in liquidity means lower slippage and ease of buying and selling ETF units. Also, ETFs are usually managed or at least supervised by professional fund managers, giving you easy access to information regarding the performance of the fund.
Having said that, it is also important to understand the risks associated with trading XRP or other crypto ETFs. The most obvious risk is the inherent volatility of the crypto market. Sudden price fluctuations can adversely affect trading positions, making risk management essential to any form of cryptocurrency trading.
Another risk that is specific to ETFs is tracking error. This means that there could be potential disparities between actual price moves in XRP and the ETF’s performance, which could lead to discrepancies between expected and actual returns.
Although ETFs are regulated instruments, it is important to remember that the crypto regulatory environment is still evolving. Also, regulations vary across jurisdictions, such that digital currencies might not have legal status in some regions while other geographies may have restrictions on trading them. Therefore, do your research before investing in cryptos.
Plus, given that cryptocurrency prices are moved by different factors than traditional instruments. This makes it important to learn all you can about the crypto market and the specific digital currencies you wish to trade before entering the live markets.
How to trade XRP ETFs
There are essentially two ways to trade these ETFs – you can either buy and sell shares of an ETF directly on a stock exchange or trade them via derivative instruments, such as contracts for difference (CFDs).
CFDs have emerged as a popular way to trade cryptocurrencies because they multiply the available trading opportunities by allowing you to speculate on both rising and falling prices. You can also trade CFDs on leverage, which allows you to magnify your exposure to the market by funding only a fraction of the total position with the funds in your trading account.
However, remember that by magnifying market exposure, leverage also multiplies the potential profits and losses.
This makes it crucial to choose your leverage wisely, based on your risk appetite, and to apply appropriate risk management measures, such as stop loss and take profit.
How to choose an XRP ETF
Given the long list of ETFs waiting to be launched, including both futures and spot ETFs, choosing the right one, based on your trading goals, psyche and risk tolerance, is important. Here’s a look at what to consider while making a choice.
The fund’s reputation
Do your homework to learn all about the ETF issuing brand. Check their track record of managing ETFs of other asset classes. Do their funds track the performance of the underlying asset closely? What is their history of fund management?
Experience with crypto assets is an added benefit. However, remember that crypto ETFs are a very new instrument, and even the best brands are likely to have limited histories of managing such funds.
Assets under management
Higher assets under management (AUM) usually reflect greater investor confidence in the fund. Higher AUM also tends to correlate with higher liquidity. So, remember to check and compare the AUMs of the various ETFs under consideration.
Expense ratio
Investing in ETFs means you will need to pay certain charges, such as management fees. Taking this into account while calculating your overall returns from the investment is called the expense ratio.
Some ETFs might waive management fees in the initial period to attract investors. So, make sure you do your research thoroughly. There should be no hidden fees.
Ready to trade?
Once you’ve done your research and chosen the ETF you wish to trade, use a demo account to practice. This will allow you to hone your trading strategy for XRP ETFs in particular and cryptocurrency trading in general.
Practice trading with Alpari to gain access to real-world market conditions and trading tools.
