Teucrium Investment Advisors has launched the first-ever exchange-traded fund (ETF) based on XRP in the United States, marking a historic moment for the industry. Trading on the NYSE Arca under the ticker XXRP, the fund isn’t a spot ETF but rather a 2x leveraged ETF that offers twice the daily returns of XRP.
The XXRP ETF officially started trading on April 8. The ETF achieves its price performance by holding financial instruments and swaps; it doesn’t directly hold the cryptocurrency. The fund, which has a 1.85% management fee, was launched with $2 million in assets under management and is aimed at traders looking to profit from short-term price moves.
Teucrium, a company that has leveraged significant success in launching commodity-based ETFs to track agricultural commodities—corn, wheat, soybeans, and sugar—is now launching a digital asset ETF. This growth demonstrates the public’s acceptance of cryptocurrencies as an investment.
CEO Sal Gilbertie emphasized that strong investor demand was the reason for the launch. Launching the fund during a downturn can give the first investors a lot of long-term upside potential, he noted.
This milestone comes at a pivotal moment for XRP. Ripple Labs’ legal battle with the U.S. is ongoing. Ripple also recently agreed to pay a $50 million payoff to the US SEC. The US. With the resolution, regulatory clarity on XRP has returned, bringing interest from investors back into the token.
Yet, legwork notes that the XXRP ETF is a leveraged product that is so high risk that it is permitted only for experienced traders with high-risk tolerance. People are worried about XRP’s price changes and fewer people using it on the Ripple network.
Other sizeable financial institutions, like Bitwise, Grayscale, and Franklin Templeton, are still waiting on the regulator to approve their spot XRP ETFs. Experts think these products could get the go-ahead by the end of 2025, especially after the Ripple lawsuit resulted in a favorable outcome and regulatory change.
Right now, though the U.S. has not approved spot Bitcoin ETFs, it has approved futures Bitcoin ETFs. The future U.S. will approve a spot XRP ETF too because U.S. financial giant Teucrium has launched the first-ever spot XRP ETF, priced at $2.00.
