Leveraged XRP ETF Makes US Debut: Teucrium's 2x Fund Hits NYSE Arca Market
Teucrium Unveils First Leveraged XRP ETF in US Market
Teucrium Investment Advisors has announced the launch of the United States' first leveraged XRP exchange-traded fund (ETF), set to debut on the NYSE Arca exchange on April 8, 2025. The Teucrium 2x Long Daily XRP ETF (XXRP) will offer investors twice daily returns on XRP with a management fee of 1.85%.
The XXRP fund, established with $2 million in net assets, mirrors the performance of XRP through the use of swaps rather than direct token holding. The launch of the leveraged ETF presents an unusual case, as it precedes any approved spot XRP ETF for the cryptocurrency asset class.
Industry analysts, such as Eric Balchunas from Bloomberg Intelligence, have noted the atypical launch sequence, stating, "It's somewhat unusual (possibly a first) for a new asset's first ETF to be leveraged."
Typically, ETFs for nascent cryptocurrencies start with unleveraged spot funds, which directly hold the underlying asset. Many firms, including WisdomTree, Bitwise, and Franklin Templeton, have filed applications for spot XRP ETFs, some of which are pending regulatory approval.
Analysts from Bloomberg and predictions market Polymarket predict a 65-75% chance of spot XRP ETF approval in 2025. Teucrium's move might pave the way for additional XRP investment vehicles in the future.
The XXRP ETF is positioned as a short-term trading vehicle for sophisticated investors, with resetting returns suitable for capitalizing on short-term price movements. Investors should bear in mind the compounding effects, as significant market swings could lead to losses despite positive daily returns.
Teucrium, founded in 2010, has made a name for itself in the ETF space, primarily offering products tied to agricultural commodities. The launch of the leveraged XRP ETF marks a new venture into the cryptocurrency markets for the firm.
The positive price action of XRP, up 6.5% over the past 24 hours, comes as the token stands to garner more investor attention with the arrival of the new ETF. The leveraged product's launch could serve as a foundation for additional XRP-focused investment vehicles in the near future.
Investors interested in XRP could find the Teucrium 2x Long Daily XRP ETF (XXRP) a unique opportunity for leveraged investing in the technology sector, given that it is the first leveraged XRP ETF in the US market. Despite the atypical launch sequence, analysts predict a potential approval for a spot XRP ETF in 2025, which might pave the way for additional XRP investment vehicles in the future.
