Teucrium Investment Advisors LLC is set to launch the first-ever leveraged XRP exchange-traded fund in the U.S., following approval by the Securities and Exchange Commission.
The fund, called the Teucrium 2x Long Daily XRP ETF, will begin trading on NYSE Arca under the ticker XXRP on Tuesday, Apr. 8, as reported by Bloomberg. The fund is designed to deliver twice the daily return of XRP (XRP) by using swap agreements.
For example, the ETF will increase by 2% if XRP increases by 1% and lose twice as much if XRP declines. It will charge a management fee of 1.89%, as per the company’s prospectus, and is intended for short-term, active investors who have a strong view of XRP’s daily price movements.
Teucrium will use several indices and ETPs, such as the CME CF XRP-Dollar Reference Rate and a basket of XRP ETPs listed in Europe, such as those from 21Shares, Bitwise, WisdomTree, and CoinShares, to determine the swaps’ prices. These foreign products will act as initial benchmarks because there are currently no spot XRP ETFs trading in the United States.
Teucrium, a Vermont-based asset manager overseeing $311 million in assets, previously launched a Bitcoin futures ETF in April 2022 under the Securities Act of 1933, making it familiar with crypto-linked ETF structures. The firm also plans to introduce a 2x Short Daily XRP ETF, giving traders a way to profit from XRP price drops.
Bloomberg ETF analyst Eric Balchunas pointed out in an Apr. 8 X post that it’s unusual for an asset’s first ETF to be a leveraged product. He also indicated that expectations for the approval of a spot XRP ETF remain strong, despite none being available yet.
This launch comes after Ripple Labs and the SEC recently reached a $50 million settlement, which put an end to a protracted legal dispute over XRP’s classification. With the SEC’s regulatory clarity, Ripple CEO Brad Garlinghouse has shown increasing confidence in XRP ETFs.
In a Mar. 19 interview with Bloomberg, shortly after the regulatory win, he predicted that spot XRP ETFs could launch in the second half of 2025. A number of asset managers have already filed with the SEC for spot XRP ETFs, including Bitwise, Canary Capital, 21Shares, WisdomTree, CoinShares, Grayscale, and Franklin Templeton.
