TLDR
- Teucrium launched a 2x leveraged XRP ETF to offer targeted exposure to Ripple’s native token.
- Teucrium CEO Sal Gilbertie believes Ripple could eventually replace the SWIFT payment system.
- The firm used swap agreements based on a Swiss XRP ETF due to the lack of XRP futures.
- The XRP ETF quickly reached over $300 million in assets under management.
- Teucrium focused on leveraged products to avoid direct competition with larger ETF issuers.
Teucrium has officially launched a leveraged XRP ETF, with CEO Sal Gilbertie expressing confidence in Ripple’s potential to modernize global finance. The fund, called the Teucrium 2x Long Daily XRP ETF, targets investors seeking exposure to XRP’s market movement. Gilbertie confirmed that the decision aligns with Ripple’s position as a potential alternative to the SWIFT payment network.
XRP ETF Backed by Ripple’s Cross-Border Payment Focus
Teucrium entered the XRP ETF space after recognizing Ripple’s years of development in improving cross-border payment infrastructure. Gilbertie stated that the firm saw XRP’s use case as significantly more relevant than other digital assets. His understanding of traditional financial systems also influenced the ETF launch.
Unlike Bitcoin or Ethereum, XRP’s utility in financial transactions aligned more closely with Teucrium’s derivatives background. Gilbertie emphasized Ripple’s operational consistency and focus on institutional adoption. This direction, he believed, positioned XRP as a leading solution for modern money transfers.
The XRP ETF was structured to meet strong investor interest in leveraged products that target high-growth assets. Teucrium saw this as an opportunity to capitalize on demand while also avoiding direct competition with larger firms. Instead, it focused on creating a fund that leveraged its core strengths in complex financial instruments.
Teucrium Uses Derivatives Expertise to Gain Early Market Entry
Due to the absence of XRP futures at the time, Teucrium based the XRP ETF structure on swap agreements. These swaps referenced a Swiss-listed XRP ETF, allowing Teucrium to offer exposure to the asset. This workaround enabled the firm to launch its leveraged XRP ETF before others entered the market.
Gilbertie noted that Teucrium’s strategic use of swaps gave it a critical first-mover advantage. The 2x Long Daily XRP ETF quickly gained traction and reached over $300 million in assets under management. Strong interest from the XRP community contributed to its rapid growth.
The CEO described XRP supporters as highly engaged and responsive to innovative financial products. This enthusiasm played a significant role in the success of the XRP ETF. Teucrium’s experience in derivatives allowed it to meet the specific needs of this investor segment.
Early Bitcoin ETF Challenges Shaped Teucrium’s XRP ETF Strategy
Teucrium previously filed for a Bitcoin ETF under the 1933 Securities Act, which involved a lengthy approval process. Later, the SEC favored 1940 Act filings, enabling faster reviews for other firms. This regulatory shift impacted Teucrium’s timing and delayed its Bitcoin ETF entry.
As a result, Teucrium reevaluated its strategy and chose a different route with the XRP ETF. The firm decided to focus on a less crowded market segment with a targeted product. Gilbertie and his team used that experience to refine their approach to crypto investment vehicles.
The XRP ETF now represents Teucrium’s commitment to offering specialized products that reflect both market demand and firm expertise. Ripple’s ongoing progress in financial infrastructure supports the fund’s long-term outlook.
