Teucrium Investment Advisors is making waves by launching the first-ever leveraged XRP exchange-traded fund (ETF) in the United States, providing a new way for investors to gain exposure to Ripple’s cryptocurrency.
The Teucrium 2x Long Daily XRP ETF (XXRP) will begin trading on the NYSE Arca this Tuesday, offering investors a 2x leveraged exposure to XRP. This marks the debut of a leveraged XRP ETF, ahead of the SEC’s decision on approving a traditional “spot” XRP ETF, which remains under review.
“It’s rare—possibly even unprecedented—that a leveraged ETF arrives before a spot ETF for a new asset,” said Bloomberg Intelligence’s Eric Balchunas in an X post. “While we’re still waiting for approval of spot XRP ETFs, we’re cautiously optimistic.”
Generally, ETFs tracking new assets like cryptocurrencies are launched as unleveraged “spot” funds, which directly hold the underlying asset. More complex leveraged products typically follow later as the asset class matures.
Teucrium’s leveraged ETF will have a management fee of 1.85%, but the firm has noted that XRP’s volatility and declining transaction volume on the Ripple network could pose challenges for the fund’s performance. This reflects wider concerns over XRP’s long-term adoption and market stability.
XRP ETF Applications Heat Up as Ripple’s Legal Developments Bolster Market Sentiment
Teucrium’s launch comes amidst a surge in applications for spot XRP ETFs, with major investment firms like WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton submitting proposals to the SEC. These spot ETFs would offer investors direct exposure to XRP without leveraging.
The SEC has acknowledged these applications, and decisions are expected soon, potentially paving the way for a broader range of XRP investment vehicles in the market.
XRP has surged by 6.5% in the past 24 hours, in line with an overall positive trend in the cryptocurrency market.
