Line a baking sheet with parchment paper and set aside.
Microwave marshmallows and butter in 30-second intervals until completely melted.
Add in the cereal and vanilla extract and fold. Once combined, pour into a buttered-coated pan and flatten evenly with a spatula. Allow bars to set for at least 1 hour.
In a microwave-safe bowl, microwave your candy melts for about 30 seconds. Stir in coconut oil and microwave for another 30 seconds.
Dip 1 inch of each cereal treat into melted candy and lay flat on the lined baking sheet. Top off with red and white sprinkles. Let set in the refrigerator for at least 15 minutes.