Teucrium launches the first-ever XRP ETF with 2x leverage on NYSE Arca
Teucrium Investment Advisors, based in Vermont, is launching the first-ever XRP ETF in the United States. This unique fund, called Teucrium 2x Long Daily XRP ETF (XXRP), will be listed on NYSE Arca and will offer leveraged exposure to the daily price of XRP, making it the first of its kind in the history of XRP-related ETFs. The XRP ETF aims to double the daily performance of the XRP price, targeting investors with a strong short-term conviction. Teucrium will charge a management fee of 1.85% and distribute monthly.
The first XRP ETF makes its debut in the United States
The objective of this new product is clear: to double the daily performance of the XRP price, targeting investors with a strong short-term conviction. Teucrium will charge a management fee of 1.85% and distribute monthly. XXRP is listed as the only current or upcoming XRP-related US ETF on the DTCC website.
Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighted the unusual nature of this move, stating that it is probably the first time that a leveraged ETF has been launched before a spot ETF for the asset is approved.
Still no green light for an XRP spot ETF
While several major asset managers, including Grayscale, WisdomTree, and Bitwise, have filed applications for an XRP spot ETF, the SEC has not yet made a decision. Despite this, the regulatory climate seems to be easing, especially under the influence of Donald Trump’s pro-crypto policies. Several applications were officially recognized by the SEC earlier this year, suggesting that the process is well underway.
A key event also removed a major legal impediment: Ripple Labs reached an agreement with the SEC in March, ending a battle that began in 2020. The company agreed to pay a $50 million fine, well below the initially demanded $125 million.
And as many anticipated, this resolution opens the door to possible regulatory approval. With the SEC dropping its appeal, one of the last regulatory hurdles has been cleared. XRP or Solana could be the next to get a spot ETF, following Bitcoin and Ethereum, although Litecoin and Hedera are preferred by specialists.
An institutional demand that remains uncertain for altcoins
Despite these developments, market enthusiasm for an XRP spot ETF remains uncertain. Ethereum ETFs have had mixed success, and many institutions still believe there is no alternative to Bitcoin, as Michael Saylor would say.
In other words, the adoption of a financial product depends not only on its approval but also on investor confidence in its potential returns. Currently, XRP is trading at $1.85, down 1.3% for the day.
While Teucrium’s leveraged ETF is a historic first, it does not guarantee massive market demand. However, it could serve as a real-world test to gauge investor interest before the expected but uncertain arrival of spot ETFs on XRP.
