Teucrium Investment Advisors has launched the first leveraged XRP ETF in the U.S., named the Teucrium 2x Long Daily XRP ETF (ticker: XXRP). This groundbreaking product aims to deliver 2x the daily returns of XRP, catering to institutional and retail investors seeking high-risk, high-reward exposure to the digital asset.
Key Features of the XXRP ETF
- Leveraged Strategy: Doubles XRP’s daily price movements via swap agreements tied to benchmarks like the CME CF XRP-Dollar Reference Rate.
- Expense Ratio: 1.85%, reflecting the premium for leveraged crypto exposure.
- Regulatory Approval: Listed on NYSE Arca under SEC’s 1933 Act, mirroring Teucrium’s earlier Bitcoin Futures ETF success.
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Why This ETF Matters
1. Institutional Demand Meets Regulatory Clarity
With Ripple’s lawsuit against the SEC nearing resolution, XRP’s status as a non-security has emboldened asset managers. Teucrium CEO Sal Gilbertie noted:
"XRP is back in institutional conversations due to low entry prices and clearer regulations."
2. European ETPs Bridge the Gap
Since no U.S. spot XRP ETF exists, XXRP relies on European ETPs like:
- 21Shares XRP ETP
- WisdomTree Physical XRP ETP
- CoinShares Physical XRP ETP
This workaround ensures compliance while capitalizing on global XRP liquidity.
Market Impact and Future Developments
XRP Price Action
- Current price: $1.87 (5% 24-hour rise).
- Analysts anticipate increased ETF-driven inflows as legal uncertainties fade.
Upcoming Products
Teucrium plans a 2x Short Daily XRP ETF, enabling bets against XRP’s price—a first for the U.S. market.
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FAQs
Q: How does XXRP achieve 2x leverage?
A: Through swaps referencing CME benchmarks and European ETPs.
Q: What’s the expense ratio?
A: 1.85%, higher than non-leveraged crypto ETFs.
Q: Why launch now?
A: Regulatory clarity post-Ripple settlement and rising institutional demand.
Q: Are inverse XRP ETFs coming?
A: Yes—Teucrium’s 2x Short Daily XRP ETF will launch soon.
Conclusion
Teucrium’s XXRP marks a pivotal moment for altcoin ETFs, combining leveraged strategies with regulatory progress. As Wall Street warms to crypto, XRP could follow Bitcoin’s ETF-driven liquidity boom.