Teucrium Investment Advisors has officially announced the launch of the first leveraged XRP ETF in the United States called Teucrium 2x XRP ETF (ticker: XXRP). This fund provides investors with the opportunity to access performance double (2x) the price fluctuations of XRP - the cryptocurrency associated with Ripple.
Notably, XXRP will be listed and begin trading on NYSE Arca next Tuesday, even as spot XRP ETFs have not yet been approved by the US Securities and Exchange Commission (SEC).
Bloomberg Intelligence analyst Eric Balchunas commented on platform X (formerly Twitter): "It's quite unusual for the first ETF of a new asset to be a leveraged ETF (possibly even the first time). The spot XRP ETF has not been approved, although the likelihood of approval is quite high."
In the digital asset field, ETFs typically start with an unleveraged spot ETF model, directly holding the underlying asset, before more complex products like leveraged ETFs are deployed. Teucrium's contrary approach has attracted significant attention.
The XXRP fund applies a management fee of 1.85%, and Teucrium also warns that the fund's performance may be affected by significant XRP price volatility and decline in Ripple network usage, indicating broader concerns about market stability and the cryptocurrency's acceptance level.
Teucrium's launch of the leveraged XRP ETF occurs as many large asset managers await SEC approval for spot XRP ETFs, including names like WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton. These proposals have been received by the SEC, with decisions expected in the coming months, paving the way for new investment options around XRP.
By pioneering the launch of a leveraged XRP ETF, Teucrium not only affirms its innovative position in traditional finance but also drives further attention to XRP's investment potential amid close market scrutiny of regulatory movements.
