First Leveraged XRP ETF Set to Launch in the U.S.
Teucrium Investment Advisors LLC is launching the first leveraged XRP ETF in the U.S. The Securities and Exchange Commission has approved the Teucrium 2x Long Daily XRP ETF. It will start trading on NYSE Arca on April 8 under the ticker XXRP.
This ETF aims to give twice the daily return of XRP. If XRP goes up by 1%, the ETF will rise by 2%.Conversely, if XRP drops, the ETF will fall twice as much. The fund charges a 1.89% management fee. It’s for short-term investors who closely follow XRP’s price.
Teucrium will use various indices and ETPs to set swap prices. These include the CME CF XRP-Dollar Reference Rate and European XRP ETPs. This is as there are no spot XRP ETFs in the U.S. yet.
Teucrium, which manages $311 million, previously launched a Bitcoin futures ETF. They also plan a 2x Short Daily XRP ETF for traders who want to profit from XRP price drops.
Eric Balchunas, a Bloomberg ETF analyst, noted it’s rare for an asset’s first ETF to be leveraged.He believes a spot XRP ETF could still be approved soon.
This launch follows ripple Labs’ $50 million settlement with the SEC. Ripple CEO Brad Garlinghouse now expects spot XRP ETFs to launch by late 2025. Several asset managers have already filed for spot XRP ETFs.
