**Teucrium Unveils the First Leveraged XRP Exchange-Traded Fund (ETF) in the U.S.**
Teucrium Investment Advisors LLC is excited to announce the launch of the first-ever leveraged XRP exchange-traded fund (ETF) in the United States, designed to double the daily returns of XRP. With the approval from the Securities and Exchange Commission (SEC), the fund, named the Teucrium 2x Long Daily XRP ETF, is set to begin trading on NYSE Arca under the ticker XXRP starting Tuesday, April 8, as reported by Bloomberg.
**What This Means for Investors**
This innovative ETF is tailored for active traders who have strong opinions about XRP’s daily price fluctuations. By utilizing swap agreements, the ETF aims to achieve twice the daily return of XRP. For instance, if XRP increases by 1%, the ETF is designed to rise by 2%. Conversely, if XRP declines, the ETF could potentially lose double that amount. The management fee for the ETF is set at 1.89%, as outlined in the company’s documentation.
To determine the pricing for these swaps, Teucrium will reference various indexes and exchange-traded products (ETPs), including the CME CF XRP-Dollar Reference Rate, as well as XRP ETPs listed in Europe from firms like 21Shares and CoinShares. Since there are currently no spot XRP ETFs available in the U.S., these references will serve as foundational benchmarks.
Teucrium, which manages $311 million in assets and is based in Vermont, has a solid track record in the crypto ETF space, having launched a Bitcoin futures ETF in April 2022. They are also planning to introduce a 2x Short Daily ETF, which would enable traders to profit when XRP’s price declines.
Bloomberg ETF analyst Eric Balchunas pointed out that it’s quite unusual for a leveraged product to be the first ETF for a new asset. Nevertheless, he remains optimistic about the prospects of a spot XRP ETF being approved, despite the absence of such products at the moment. “A 2x XRP ETF is launching tomorrow in the U.S., marking the first-ever XRP ETF on the market. It’s quite unusual that a new asset’s inaugural ETF is leveraged. While spot XRP is still not approved, the chances look promising,” he noted.
This launch comes on the heels of a recent $50 million settlement between Ripple Labs and the SEC, which resolved a lengthy legal dispute regarding the classification of XRP. “Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will retain $50M of the $125M fine (already in an interest-bearing escrow in cash), with the remainder returned to Ripple,” shared Stuart Alderoty, Chief Legal Officer at Ripple.
With increased regulatory clarity, Ripple CEO Brad Garlinghouse is feeling more optimistic about the future of XRP ETFs. In a March interview with Bloomberg, he expressed his belief that spot XRP ETFs could emerge in the latter half of 2025. “I have immense confidence in the ETFs. I believe there are 11 different filings pending with the SEC to launch XRP ETFs, and I expect those to go live in the second half of this year,” he stated. Several asset managers, including Bitwise, 21Shares, and Franklin, are also in the mix, further highlighting the growing interest in this space.
