First Leveraged XRP ETF Set to Hit the U.S. Market

A groundbreaking move in the U.S. ETF market is set to unfold as Teucrium Investment Advisors LLC, a Vermont-based asset manager, prepares to introduce a leveraged ETF centered around XRP.

This marks the debut of a fund directly linked to the popular cryptocurrency, aiming to attract investors looking for amplified exposure.

The newly launched Teucrium 2x Long Daily XRP ETF (XXRP) seeks to deliver twice the daily price movement of XRP, appealing to those with high-confidence, short-term strategies.

Set to begin trading on April 8 via NYSE Arca, the fund will feature monthly distributions and a management fee of 1.85%. Interestingly, it is currently the sole XRP-oriented ETF listed on the DTCC’s roster of active and forthcoming U.S. ETFs.

READ MORE:

Are XRP Surges a Red Flag for Bitcoin’s Momentum?

Commenting on the upcoming launch, Bloomberg’s Senior ETF Analyst Eric Balchunas noted the unusual nature of introducing a leveraged product as the first XRP ETF. While spot XRP ETFs remain unapproved, he suggested that the chances of future approvals look promising.

Despite some optimism, the appetite for spot XRP ETFs remains uncertain. Several financial firms, such as Grayscale, WisdomTree, and Bitwise, have submitted applications to the SEC, inspired by recent regulatory shifts. While the SEC’s acknowledgment of these applications hints at progress, the ultimate level of market interest is still up for debate.

In parallel, Ripple Labs, the driving force behind XRP, recently reached a settlement with the SEC, reducing its financial penalty to $50 million. This development, which followed the SEC’s decision to drop its appeal, could remove a significant barrier to ETF approvals.

However, skepticism persists among analysts regarding the demand for a spot XRP ETF. Min Jung from Presto Research pointed out that Ethereum ETFs have seen limited traction so far, reflecting institutional hesitation despite the recent legal clarity around XRP.

Alexander Stefanov