Teucrium Launches 2x Leveraged XRP ETF Amid Regulatory Shifts

Asset manager Teucrium Investment Advisors is set to launch a 2x leveraged exchange-traded fund (ETF) tied to XRP, marking the first such product in the United States. The Teucrium 2x Long Daily XRP ETF, trading under the ticker XXRP, will begin trading on Tuesday on NYSE Arca, offering investors twice the daily return of XRP via swaps.

The fund enters the market at a time of declining crypto prices and increasing regulatory shifts. XRP, the fourth-largest cryptocurrency by market cap, has seen renewed attention after the U.S. Securities and Exchange Commission (SEC) recently ended a multi-year legal battle with Ripple Labs, the token’s creator. The resolution, which required Ripple to pay $50 million, comes as part of a broader trend of dropped enforcement cases following President Donald Trump’s return to office.

XXRP carries a 1.85% management fee and may include XRP futures or other instruments in the future, according to its prospectus. While XRP does not currently have active futures listings on major commodities exchanges, Teucrium’s offering signals growing institutional interest in altcoins beyond Bitcoin and Ether.

The ETF’s debut follows the SEC’s greenlighting of Solana futures ETFs last month and coincides with multiple pending applications for spot XRP funds from firms including WisdomTree, Bitwise, and Franklin Templeton. While spot XRP ETFs remain under review, the appearance of leveraged products may offer a glimpse into the evolving attitude of regulators toward altcoin-based investment vehicles.

According to the analyst's forecast, the likelihood of approval for a spot XRP ETF appears high. The launch of XXRP as a leveraged product is seen as an unusual move, as it may be the first instance of an asset’s debut ETF being a leveraged product. This development suggests that regulators may be becoming more open to innovative investment vehicles in the cryptocurrency space.