TLDR
- Teucrium’s 2x XRP ETF (XXRP) launches Tuesday on NYSE Arca as the first XRP ETF in the US
- Unusual for a leveraged ETF to precede a spot ETF approval for a new crypto asset
- Management fee of 1.85% with $2 million in net assets initially
- Multiple financial firms have filed for spot XRP ETFs still under SEC review
- XRP price is up 6.5% in the last 24 hours, with analysts giving 65-75% odds for spot XRP approval in 2025
Teucrium Investment Advisors launched the first XRP-based exchange-traded fund (ETF) in the United States.
The Teucrium 2x Long Daily XRP ETF (XXRP) begins trading Tuesday on the NYSE Arca exchange, offering investors leveraged exposure to XRP’s price movements.
This ETF gives investors the opportunity to gain twice the daily return of XRP with a management fee of 1.85%. The fund has already gathered $2 million in net assets ahead of its public debut. What makes this launch particularly unusual is that it comes before any standard spot XRP ETF has received regulatory approval.
“Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, although our odds are pretty high,”
noted Bloomberg Intelligence analyst Eric Balchunas in a social media post. Typically, unleveraged spot ETFs that directly hold an asset are approved before more complex leveraged products enter the market.
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 Context and Trading Outlook
Teucrium founder and CEO Sal Gilbertie expressed that the timing could be advantageous despite recent market pressures. “What better time to launch a product than when prices are low?” Gilbertie told Bloomberg, referencing the broader crypto market slowdown.
The company has highlighted that investors with “a short-term high-conviction view on XRP prices” may find value in exploring the new ETF. However, potential investors should note Teucrium’s own warnings about XRP’s price volatility and declining usage on the Ripple network, factors that could affect the fund’s performance.
XRP itself has seen a 6.5% price increase in the past 24 hours, moving in line with a broader market recovery. The token currently trades around $1.86, showing renewed investor interest as the ETF launch approaches.
Regulatory Landscape and Future Prospects
The launch comes amid a wave of applications for standard spot XRP ETFs currently under review by the Securities and Exchange Commission (SEC). Major fund managers including WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton have filed proposals to bring unleveraged XRP ETFs to market.
The SEC is expected to make decisions on these applications in the coming months. Market analysts remain optimistic about approval chances, with Bloomberg ETF analysts attributing 65% approval odds to spot XRP ETFs in 2025. Predictions market Polymarket places even higher confidence in a positive outcome, indicating a 75% chance of SEC approval.
The regulatory environment for XRP-based products has improved following the conclusion of a four-year legal battle between Ripple Labs, the creator of XRP, and the SEC over the token’s security status. This case was finally resolved last month, clearing a major hurdle for ETF applications.
For Teucrium, this launch represents a expansion beyond its traditional focus on agricultural commodities. The company has amassed over $310 million in assets under management since its founding in 2010, primarily through ETFs tracking commodities like corn, soybeans, sugar, and wheat.
As the first mover in the XRP ETF space, Teucrium is positioned to capture interest from investors seeking regulated exposure to this cryptocurrency, while the broader market watches closely for the SEC’s next moves regarding spot XRP ETF applications.
