First-generation Ripple (XRP) fund marks 1st anniversary, will it chase spot ETFs after breaking $1.40?

▲ XRP (XRP) ETF/ChatGPT generated image ©

As the first-generation exchange-traded funds mark their first anniversary and XRP (Ripple) strongly rebounds to $1.386, market attention is focused on whether these pioneering funds will revive amid the fierce pursuit of later spot funds.

According to investment media TradingNews on September 18 (local time), REX-Osprey's XRPR, which was the first in the US to offer spot exposure, marked its one-year anniversary. Volatility Shares' XRPI, listed earlier in May 2025 based on CME futures, also continues to operate. On this day, XRP surged 6.94% to $1.386, boosted by the US Securities and Exchange Commission (SEC)'s five-year Innovation Exemption, largely recovering from the 10% plunge caused by the Senate's rejection of the US crypto market structure bill, the CLARITY Act.

However, market leadership has already shifted to seven pure spot ETFs that emerged after November 2025. Currently, US XRP spot ETFs, spearheaded by Canary Capital's XRPC, dominate the market with a total net asset value of $1 billion and 1.1 billion locked-up tokens. In contrast, XRPR, which adopted the 1940 Investment Company Act structure through its Cayman Islands subsidiary, has assets of only $49.81 million, and the futures-based XRPI recorded $140.38 million, making the combined size of these two early funds only a fraction of the total market.

In terms of structural costs and returns, first-generation funds also reveal distinct limitations and differentiators. XRPR bears a total expense ratio of 0.75% and the burden of double fees due to its inclusion in European ETPs, and its Net Asset Value (NAV) has fallen by over 60% since its launch. On the other hand, XRPI incurs a net expense ratio of 0.94% and futures rollover costs but boasts a unique monthly dividend structure, paying a 2.58% dividend yield based on collateral interest income in an environment where short-term interest rates remain around 4%.

Whether the underlying asset, XRP, breaks through its upper resistance level is a key factor in determining the future price recovery of these funds. New supply of 200 million to 400 million units enters the market monthly due to Ripple's escrow lockup release, and a significant selling wall of 1.16 billion units at break-even prices exists between $1.45 and $1.46. If XRP breaks above $1.40 on a daily closing basis, an additional upward path of approximately 10.9% to $1.5368 will open, with fund values rising in tandem. However, if the $1.2611 support level is breached, it faces a sharp decline risk of 9.0% down to $1.10.

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