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The XRP price surged 7% as asset manager Teucrium Investment Advisors said it will launch the first-ever XRP ETF (exchange-traded fund) in the US today. The Teucrium 2x Long Daily XRP ETF, which will start trading under the ticker XXRP on the NYSE Arca exchange, aims to not only offer investors an alternative way to gain exposure to the altcoin, but also to give investors twice the daily return of XRP.
“If you have a short-term high-conviction view on XRP prices, you may consider exploring the Teucrium 2x Long Daily XRP ETF,” the asset manager said.
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The fund will include a management fee of 1.85% and an annual expense ratio, according to the alternative investment manager’s website. Distributions will be paid out monthly, and the fund currently has over $2 million in total net assets.
Analyst Calls Leveraged Offering “Odd”
Bloomberg ETF analyst Eric Balchunas commented on the Teucrium XRP ETF in an April 7 X post, saying it’s “very odd” that a new asset’s first ETF is leveraged.
A 2x XRP ETF is launching tmrw in US, the first-ever XRP ETF on the market. Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, altho our odds are pretty high. Story via @isabelletanlee pic.twitter.com/Eg4Wq5Y1Qi
— Eric Balchunas (@EricBalchunas) April 7, 2025
There are currently no spot XRP ETFs in the US market. But Balchunas believes that there is a high probability that a spot fund tracking the fourth largest crypto by market cap will launch soon.
This comes after several spot XRP ETF filings were acknowledged by the US Securities and Exchange Commission (SEC) earlier this year.
Ripple Labs, the company behind XRP, also agreed to settle with the SEC last month. This has ended a years-long legal battle with the regulator, a development that analysts, including Balchunas, believe has paved the way for the approval of a spot XRP ETF.
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FAQs
- What is the significance of the XRP ETF launch?
The launch of XRP ETFs provides investors with regulated avenues to gain exposure to XRP’s price movements without directly holding the cryptocurrency, potentially attracting institutional investment. - When did the first XRP ETF launch in the U.S.?
The Teucrium 2x Long Daily XRP ETF (ticker: XXRP) launched on April 8, 2025, marking the first XRP ETF in the U.S. market. - What types of XRP ETFs are being introduced?
ProShares is set to launch three XRP futures-based ETFs: Ultra XRP ETF (2x leverage), Short XRP ETF (-1x leverage), and UltraShort XRP ETF (-2x leverage). - How have these ETF launches affected XRP’s price?
Following the announcements, XRP’s price increased by over 7%, reaching $2.28, as investor interest surged. - Are these ETFs spot or futures-based?
The current ETFs are futures-based, meaning they track XRP futures contracts rather than holding the actual cryptocurrency. - What is the difference between leveraged and inverse ETFs?
Leveraged ETFs aim to amplify the daily returns of an asset (e.g., 2x), while inverse ETFs seek to deliver the opposite performance (e.g., -1x or -2x) of the asset’s daily return. - Can these ETFs be traded on major platforms?
Yes, these ETFs are expected to be available on major trading platforms and brokerages that support ETF trading. - What are the risks associated with leveraged ETFs?
Leveraged ETFs are designed for short-term trading and can be highly volatile, potentially leading to significant losses if not managed carefully. - Is there a spot XRP ETF available?
As of now, there is no spot XRP ETF approved in the U.S., but discussions and filings are ongoing. - How does this development impact the broader crypto market?
The introduction of XRP ETFs signifies growing institutional acceptance of cryptocurrencies, potentially leading to increased liquidity and market maturity.
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