Regulators Race to Unleash $8B XRP ETF Gold Rush

Teucrium Trading’s XRP-focused products have demonstrated substantial traction in the cryptocurrency market, with the firm’s XXRP ETF—offering 2x leveraged exposure to XRP futures—amassing $122 million in assets under management (AUM) within seven weeks of its launch. The fund has ranked among the top 5% of all ETF launches by trading volume, recording $5 million in activity on its debut day, according to Bloomberg ETF analyst Eric Balchunas. This rapid adoption underscores the growing appetite for regulated XRP exposure in the U.S., despite the absence of a spot ETF for the asset.

Teucrium CEO Sal Gilbertie, a vocal advocate for XRP, has stated that demand for XRP ETFs could exceed $8 billion in the first year. This figure, higher than the $4–8 billion estimate from JP Morgan, reflects his confidence in the XRP community and Ripple’s technological capabilities in cross-border settlements. Gilbertie also highlighted the unique utility of XRP, distinguishing it from other cryptocurrencies by its role in real-world financial infrastructure. This sentiment aligns with broader industry trends, as blockchain adoption is often compared to the early stages of the internet boom.

The regulatory landscape for XRP ETFs is gaining clarity, with Polymarket data showing XRP ETF approval odds climbing to 90% in June 2025, up from 70% earlier in the month. As of June 20, 2025, the odds remain near 88%. The U.S. Securities and Exchange Commission (SEC) is currently reviewing multiple XRP ETF applications from firms such as Grayscale, VanEck, Bitwise, and Canary Capital, with a decision expected in late 2025. This regulatory progress is mirrored in Canada, where the Ontario Securities Commission (OSC) has approved several XRP ETFs from firms like Purpose Investments and 3iQ. These Canadian funds offer direct exposure to XRP, providing a model for U.S. regulators as they deliberate on spot ETF approvals.

Teucrium’s success with its leveraged XRP ETF has positioned the firm as a key player in the growing crypto ETF market. Unlike traditional ETFs, XXRP employs a futures-based approach, which limits direct exposure but caters to investors seeking leveraged returns on short-term price movements. The fund’s design reflects Teucrium’s broader strategy to bridge traditional finance and digital assets, leveraging its expertise in structured products and commodities. In interviews, CEO Sal Gilbertie has emphasized that Teucrium is not simply capitalizing on market trends but is building a long-term infrastructure for regulated digital asset investment.

The potential approval of XRP ETFs in the U.S. could have significant market implications. Bloomberg analysts suggest that if XRP ETFs capture a similar proportion of investor interest as Bitcoin ETFs—7.5% of the latter’s market share—they could see strong inflows. Bitcoin ETFs, upon launch, generated $14 billion in trading volume and $1.13 billion in net inflows, setting a benchmark for performance in the space. The approval of XRP ETFs would likely attract both institutional and retail investors, increasing liquidity and legitimizing XRP as a mainstream asset class. As regulatory hurdles continue to ease, the stage is set for a broader acceptance of crypto-based investment vehicles.