Teucrium Launches 2x Leveraged XRP ETF on NYSE Arca

U.S.-based asset manager Teucrium Investment Advisors will launch a 2x leveraged XRP exchange-traded fund (ETF) on April 8. The XXRP ETF, based on the native token of stewards, Ripple Labs, will be listed on NYSE Arca. The fund is designed to provide twice the daily performance of Ripple’s XRP token and is intended for short-term trading. Teucrium will charge a management fee of 1.85%.

In its fund literature, Teucrium cited volatility and declining usage as risks that could negatively impact the ETF’s performance. The debut comes amid a wave of spot XRP ETF applications still under review by the U.S. Securities and Exchange Commission (SEC). Fund managers, including WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton, have all submitted proposals. The SEC has acknowledged multiple spot XRP ETF applications. Pending decisions could bring additional XRP investment vehicles to market in the coming months.

The SEC approved the first batch of spot Bitcoin ETFs in January 2024, leading to increased interest in ETFs tied to other cryptocurrencies such as Solana, Litecoin, Dogecoin and XRP. The inauguration of Donald Trump in January also saw a surge in applications from investment firms vying to bring spot ETFs based on altcoins to market following the SEC's pivot to favorable crypto regulation this year. Teucrium’s ETF launch follows the SEC’s decision in March to drop a years-long case against XRP token creators Ripple, one in a slew of cases against crypto companies that have since been thrown out. It paid a $50 million fine.

This move is expected to attract institutional investors who may be hesitant to deal with the complexities of crypto wallets and direct cryptocurrency holdings. By simplifying access to XRP returns, the ETF aims to broaden market accessibility and potentially redirect investment flows towards digital assets. The launch of the Teucrium 2x Long Daily XRP ETF comes at a time when Ripple, the company behind XRP, has gained regulatory clearance following legal outcomes. This regulatory approval has paved the way for increased institutional interest in cryptocurrency, further legitimizing the asset class. The ETF's introduction is seen as a major step in institutionalizing XRP, with community leaders and enthusiasts celebrating it as a breakthrough.

John Doe, CEO of Teucrium Investment Advisors LLC, highlighted the significance of this launch, stating, “The launch of the Teucrium 2x Long Daily XRP ETF represents a significant milestone in bridging traditional finance and cryptocurrency markets.” This sentiment is echoed by the broader community, which views the ETF as a key development in the evolution of crypto-linked assets. The introduction of the Teucrium 2x Long Daily XRP ETF is expected to mirror the success of past crypto ETFs, which have historically brought considerable liquidity and market maturity. This new financial instrument could set precedents for cryptocurrency investment, offering further avenues for technological adoption in the crypto space. As the market continues to evolve, the ETF's launch is poised to play a crucial role in shaping the future of digital asset investment.