Teucrium Investment Advisors LLC is preparing to introduce the very first leveraged XRP exchange-traded fund in the U.S., following green light from the Securities and Exchange Commission.
The fund, designated as the Teucrium 2x Long Daily XRP ETF, is set to commence trading on NYSE Arca under the ticker symbol XXRP on Tuesday, April 8, according to reports. This fund aims to provide twice the daily return of XRP by utilizing swap agreements.
For instance, should XRP rise by 1%, the ETF’s value will increase by 2%, while a decline in XRP will result in a loss of double that percentage. The fund will implement a management fee of 1.89%, as detailed in the company’s prospectus, and is targeted at short-term, active investors with a strong outlook on XRP’s daily price variations.
Teucrium plans to reference multiple indices and ETPs, including the CME CF XRP-Dollar Reference Rate and various XRP ETPs available in Europe, such as those from 21Shares, Bitwise, WisdomTree, and CoinShares, to set the prices for the swaps. These international products will serve as initial benchmarks due to the absence of any spot XRP ETFs available for trading in the United States at present.
Based in Vermont, Teucrium manages $311 million in assets and previously launched a Bitcoin futures ETF in April 2022 under the Securities Act of 1933, ensuring familiarity with crypto-related ETF structures. The firm also intends to roll out a 2x Short Daily XRP ETF to offer traders opportunities to profit from declines in XRP’s price.
An ETF analyst noted on April 8 that it is quite rare for the first ETF of an asset to be a leveraged product. He also mentioned that there remains strong anticipation for the approval of a spot XRP ETF, despite there being none currently available.
This launch occurs after Ripple Labs and the SEC have recently come to a $50 million settlement, concluding a lengthy legal battle regarding XRP’s classification. Following the SEC’s clarification on regulations, Ripple CEO Brad Garlinghouse has expressed growing confidence in the future of XRP ETFs.
In a March 19 interview shortly after their regulatory victory, Garlinghouse predicted that spot XRP ETFs could debut in the latter half of 2025. Several asset managers have already submitted applications to the SEC for spot XRP ETFs, including Bitwise, Canary Capital, 21Shares, WisdomTree, CoinShares, Grayscale, and Franklin Templeton.