Teucrium Investment Advisors is set to launch the first-ever leveraged exchange-traded fund (ETF) linked to XRP, the fourth-largest cryptocurrency by market capitalization, on April 8, 2025. The Teucrium 2x Long Daily XRP ETF, trading under the ticker symbol XXRP, will aim to provide investors with double the daily return of the XRP token, utilizing swap agreements to achieve its leveraged exposure.
The ETF will debut on the NYSE Arca and comes with a management fee of 1.85% and an annual expense ratio of 1.89%. As of now, the XXRP ETF has approximately $2 million in net assets. Sal Gilbertie, founder and CEO of Teucrium, expressed optimism about the launch, stating, "If you have a short-term high-conviction view on XRP prices, you may consider exploring the Teucrium 2x Long Daily XRP ETF." This innovative product is designed for experienced traders looking to capitalize on XRP's price movements.
The introduction of the XXRP ETF marks a significant milestone, especially considering the ongoing legal battles surrounding XRP's status. Recently, Ripple Labs, the company behind XRP, reached a settlement with the Securities and Exchange Commission (SEC), paying a reduced fine of $50 million. This settlement has led to increased optimism among investors, with predictions indicating a high likelihood of a spot XRP ETF approval in the near future.
Bloomberg ETF analyst Eric Balchunas noted the unusual nature of launching a leveraged ETF as the first product tied to a new asset. He stated, "It’s very odd (maybe a first) that a new asset’s first ETF is leveraged." Despite this, the approval of the XXRP ETF indicates growing interest in cryptocurrency investment vehicles within traditional financial markets.
Several other asset management firms, including Grayscale, Bitwise, and Franklin Templeton, have submitted applications for spot XRP ETFs, with predictions from the market suggesting a 75% chance of approval by the SEC in 2025. Balchunas and fellow analyst James Seyffart previously attributed a 65% approval rate to these applications.
The launch of the XXRP ETF comes at a time when XRP is trading at approximately $1.90, having seen a 14% increase following the favorable settlement with the SEC. The ETF is positioned to attract investors looking for leveraged exposure to the cryptocurrency market, especially as interest in digital assets continues to surge.
Teucrium, which has previously focused on agricultural commodities, has expanded its offerings to include cryptocurrency products. The firm has managed to amass over $320 million in assets since its inception in 2010, primarily through its agricultural ETFs. The XXRP ETF will utilize derivatives to track XRP's daily price movements, allowing investors to engage with the cryptocurrency market without directly holding the asset.
As the regulatory landscape for cryptocurrencies evolves, the approval of the XXRP ETF could pave the way for more crypto-related investment products in the future. The SEC's recognition of a request by Canary Capital for a spot XRP ETF, which is currently undergoing a 21-day public consultation process, is seen as a sign of potential openness from regulators.
In summary, the launch of the Teucrium 2x Long Daily XRP ETF represents a significant advancement in the integration of cryptocurrency products into traditional financial markets. With its unique structure and focus on leveraging daily price movements, the XXRP ETF aims to provide investors with innovative options for navigating the rapidly changing landscape of digital assets.
As the market continues to respond positively to the news, many analysts anticipate further developments in the crypto ETF space throughout 2025. The XXRP ETF is just the beginning, as investors and asset managers alike look to capitalize on the growing demand for cryptocurrency exposure.
Investors are encouraged to consult with financial advisors and carefully review the fund's prospectus for detailed information on risks, fees, and investment objectives before investing. The XXRP ETF is designed for sophisticated investors who understand the risks associated with leveraged products and are looking to enhance their exposure to XRP's price action over a single trading day.
For more information about the Teucrium 2x Long Daily XRP ETF, interested parties can visit Teucrium's official website or contact their customer service for additional details.
