The New York Stock Exchange (NYSE) has greenlit a new exchange-traded fund (ETF) related to XRP.
The Teucrium 2x Long Daily XRP ETF (XXRP) is set to launch on April 8 and aims to capture twice the daily performance of XRP through swap contracts.
This announcement resulted in a roughly 7% increase in XRP’s price, bringing it to $1.87 at the time of writing. This rise follows a recent downturn influenced by wider market anxieties, including global tariff tensions.
XXRP
A summary of the fund states:
“The Teucrium 2x Long Daily XRP ETF (XXRP) seeks daily investment results, prior to fees and expenses, that correspond to two times (2x) the daily price performance of XRP for a single day, and not for any other duration.”
Unlike traditional spot crypto ETFs, XXRP does not possess the underlying asset. Instead, it tracks the daily performance of XRP via derivatives. This arrangement enables traders to engage with XRP’s price movements without needing to hold the token directly or navigate cryptocurrency exchanges.
The fund carries an annual expense ratio of 1.85%.
Spot XRP ETF
The approval of XXRP occurs at a time when no spot or futures XRP ETF is currently available in the US market.
He pointed out:
“It is quite unusual (possibly a first) for a new asset’s initial ETF to be leveraged. Despite the high chances, spot XRP has yet to receive approval.”
Though a spot XRP ETF is still pending approval, the SEC has recognized several filings this year, signaling progress in the evaluation process.
Market sentiment appears optimistic regarding potential approval, particularly following Ripple’s resolution of its long-standing legal battle with the SEC, where the company settled for a reduced fine of $50 million, down from $125 million.
In light of this situation, analysts suggest that the introduction of XXRP may be an encouraging step toward wider acceptance of XRP-based investment options within conventional finance.