TLDR:
- Teucrium Investment Advisors is launching the first XRP ETF in the U.S. on Tuesday, April 8, 2025
- The Teucrium 2x XRP ETF (XXRP) will offer 2x leveraged exposure to XRP with a 1.85% management fee
- Unusually, this leveraged ETF is launching before any spot XRP ETF has been approved
- Several spot XRP ETF applications from major fund managers remain under SEC review
- Analysts give high odds (65-75%) for spot XRP ETF approval in 2025
The cryptocurrency investment landscape is set to expand on Tuesday with the launch of the first XRP-based exchange-traded fund (ETF) in the United States. Teucrium Investment Advisors will debut its Teucrium 2x Long Daily XRP ETF (XXRP) on the NYSE Arca exchange, offering investors leveraged exposure to the digital asset.
The new ETF will aim to provide investors with twice the daily return of XRP, the token closely associated with Ripple. This investment vehicle comes with a management fee of 1.85%. According to Teucrium’s website, the fund currently has $2 million in net assets.
In an unusual move for the crypto ETF space, this leveraged product is launching before any standard spot XRP ETF has received regulatory approval. Bloomberg Intelligence analyst Eric Balchunas noted this oddity on social media, stating it might be the first time a new asset’s initial ETF is a leveraged one.
A 2x XRP ETF is launching tmrw in US, the first-ever XRP ETF on the market. Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, altho our odds are pretty high. Story via @isabelletanlee pic.twitter.com/Eg4Wq5Y1Qi
— Eric Balchunas (@EricBalchunas) April 7, 2025
Market Timing and Investor Interest
Teucrium founder and CEO Sal Gilbertie told Bloomberg that investor interest in an XRP ETF has been strong. He expressed optimism about the timing of the launch, which coincides with a broader market downturn influenced by U.S. President Donald Trump’s tariffs.
“What better time to launch a product than when prices are low?” Gilbertie remarked. The CEO also hinted that the company may file to list additional crypto ETFs in the future.
Teucrium is marketing the product to investors with “a short-term high-conviction view on XRP prices.” The firm has been operating since 2010 and has accumulated over $310 million in assets under management. Their offerings have focused mainly on agricultural commodities like corn, soybeans, sugar, and wheat.
The company has issued cautions about potential challenges facing the fund. These include XRP’s price volatility and declining usage on the Ripple network, which could affect the ETF’s performance.
Pending Spot XRP ETF Applications
The launch of Teucrium’s leveraged fund comes as multiple applications for spot XRP ETFs remain under review by the Securities and Exchange Commission (SEC). Major financial players including WisdomTree, Bitwise, 21Shares, Canary Capital, Franklin Templeton, and Grayscale have filed proposals for unleveraged XRP ETFs.
Industry analysts maintain positive outlooks for the approval of these spot ETF applications. In February, Bloomberg ETF analysts Eric Balchunas and James Seyffart projected 65% approval odds for a spot XRP ETF in 2025. Predictions market Polymarket currently places the chances even higher, at 75%.
These developments follow the recent conclusion of Ripple Labs’ long legal battle with the SEC over XRP’s security status. The case, which lasted four years, came to a close last month, creating a more favorable environment for XRP-based investment products.
Price Movement and Market Response
The news appears to be positively impacting XRP’s market performance. The token has seen a 6.5% price increase in the past 24 hours, aligning with a broader upward trend in the cryptocurrency market.
The typical path for cryptocurrency ETFs has been to start with spot funds that directly hold the underlying asset before moving to more complex products like leveraged ETFs. Teucrium’s approach reverses this pattern, bringing a leveraged product to market first.
Decisions on the pending spot XRP ETF applications are expected in the coming months. Approval would likely expand the range of XRP investment options available to U.S. investors and potentially influence the token’s adoption and market stability.
XRP is currently trading at approximately $1.87, according to market data cited in the reports. The token’s performance will be closely watched as the new ETF begins trading on Tuesday.
The launch represents another step in the growing institutionalization of cryptocurrency investments, following the successful introduction of Bitcoin and Ethereum ETFs in the United States market.
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