The initial XRP exchange-traded fund (ETF) in the United States experienced a “fantastic response” on its launch day, according to the CEO of Teucrium, Sal Gilbertie.
During his appearance on the Crypto Prime podcast, Gilbertie described the debut as Teucrium’s most successful ETF introduction to date in terms of activity on its first day.
The New York Stock Exchange (NYSE) granted approval for the listing of a new ETF related to XRP. The Teucrium 2x Long Daily XRP ETF (XXRP) was launched on April 8 and is structured to provide double the daily performance of XRP through swap contracts.
Gilbertie noted that the fund’s registration initially went largely unnoticed, given that it was the only XRP ETF that filed for a ticker symbol.
Approval for the fund came shortly after a leadership shift at the US Securities and Exchange Commission (SEC), which Gilbertie interpreted as a move towards a more constructive regulatory attitude regarding cryptocurrency.
Product Structure Targets Active Traders
This ETF is designed as a 2x leveraged trading tool with daily resets. Gilbertie pointed out that the fund isn’t meant for long-term holding, warning that it might lose value during stagnant or slow-moving markets due to the compounding effects typical of leveraged daily-reset products.
He stated that the ETF is intended for aggressive traders who are optimistic about XRP but lack access to leverage via traditional margin accounts. Unlike spot crypto ETFs, XXRP does not hold the actual asset but tracks the daily performance of XRP through derivatives.
Moreover, Gilbertie mentioned that retail investors using platforms such as Robinhood can now gain leveraged exposure through the ETF without the burdensome operational or regulatory requirements of margin accounts.
There is also a potential inverse product that has been filed, though Teucrium has decided to hold off on launching it immediately while assessing investor interest.
The company remains open to expanding its crypto ETF lineup if it aligns with investor demands and fits its strategy of offering specialized tools within regulated frameworks.
Regulatory Environment and Timing
Gilbertie highlighted that the launch occurred after the expiration of the mandatory effectiveness period calculated from the filing date under the Securities Act of 1933.
He attributed the success of the registration and approval to the procedural consistency and rule adherence implemented under the new SEC leadership. He noted that previous leadership had adopted a more adversarial stance toward crypto-related applications, stifling innovation and creating regulatory ambiguities.
Teucrium was an early applicant for a Bitcoin (BTC) ETF but had to withdraw its submission due to SEC pressure. The firm later reapplied when the market for Bitcoin futures matured.
Gilbertie asserted that the company’s precedent-setting involvement in establishing crypto ETFs has also informed legal arguments in fights surrounding subsequent ETF proposals.
The current XRP ETF gains exposure to the asset through swaps related to XRP exchange-traded products listed in Europe. Gilbertie indicated that Teucrium would contemplate alternative instruments, including futures, should they become available.
The design of the ETF allows for exposure to any instrument that reflects XRP’s price action, optimizing for liquidity and cost-effectiveness.
Outlook for XRP
Gilbertie expressed his personal enthusiasm for XRP, citing its utility in enabling rapid cross-border payments and its increasing adoption by institutions creating infrastructure for nearly instantaneous settlement.
He mentioned Ripple’s recent acquisition of Hidden Road, suggesting that it might facilitate integrated prime brokerage services to shorten traditional financial settlement timelines.
Gilbertie characterized XRP as a “tool” rather than a store of value like Bitcoin, distinguishing its purpose as a transactional protocol from BTC’s role as digital gold. He noted that XRP is well-distributed, operates under a clear regulatory framework, and is backed by a dedicated compliance team.
Teucrium’s ETF structure offers a regulated pathway for accessing exposure to XRP. Gilbertie predicts that XRP and similar technologies will increasingly provide the foundational infrastructure for quicker financial settlements within capital markets.
He concluded by asserting that while Bitcoin should be seen as a stabilizing asset and long-term store of value, XRP, alongside networks like Ethereum (ETH) and Solana (SOL), offers a compelling evaluation as technological platforms.
Gilbertie remarked that the ETF’s introduction reflects a more mature regulatory landscape and a rising interest in diverse crypto investment options.