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Teucrium Investment Advisors is making history by launching the first-ever leveraged XRP exchange-traded fund (ETF) in the U.S., marking a significant milestone in the cryptocurrency space.
The Teucrium 2x Long Daily XRP ETF (XXRP) will begin trading on the NYSE Arca this Tuesday, offering investors twice the daily performance of XRP. The ETF arrives ahead of any official approval of a “spot” XRP ETF, which is still under review by the U.S. Securities and Exchange Commission (SEC).
“This is quite unusual, perhaps a first, where the first ETF for a new asset is a leveraged product,” said Bloomberg Intelligence analyst Eric Balchunas in an X post. “While spot XRP hasn’t yet been approved, we remain optimistic that the chances are good.”
Typically, ETFs linked to emerging assets like cryptocurrencies begin with unleveraged, direct “spot” funds, which directly hold the underlying asset, and only later do more complex, leveraged products get introduced.
The Teucrium ETF will carry a management fee of 1.85%. However, the firm has highlighted concerns over XRP’s price volatility and a decline in network activity on Ripple, which could negatively impact the ETF’s performance. These concerns reflect broader questions surrounding the long-term adoption and market stability of XRP.
XRP ETF Landscape Grows as Legal Developments Strengthen Ripple’s Position
Teucrium’s leveraged ETF enters a rapidly expanding landscape of XRP ETFs, as a growing number of firms file for approval of spot ETFs. Leading asset managers, including WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton, have submitted proposals to the SEC for non-leveraged XRP ETFs, which could provide investors with more traditional exposure to the token.
The SEC has already acknowledged these filings, and decisions on their approval are expected in the coming months. These rulings could open the door for a new wave of investment opportunities for those seeking to invest in XRP.
XRP has seen a 6.5% increase in price over the past 24 hours, reflecting a broader upward movement in the cryptocurrency market.
