U.S. asset manager Teucrium Investment Advisors will debut a 2x leveraged XRP exchange-traded fund (ETF) on April 8, becoming the first XRP-based ETF to reach U.S. markets. The product, listed under the ticker “XXRP,” will trade on NYSE Arca and aims to deliver twice the daily performance of Ripple’s XRP token.
According to the fund’s overview, XXRP is designed for short-term trading and uses derivatives such as futures contracts to achieve its leveraged exposure. The ETF carries a management fee of 1.85%.
The launch is notable for arriving before any spot XRP ETFs have been approved by the U.S. Securities and Exchange Commission (SEC), despite multiple pending applications from major asset managers.
Bloomberg ETF analyst Eric Balchunas described the timing as highly unusual.
“A 2x XRP ETF is launching tmrw in US, the first-ever XRP ETF on the market,” he wrote on X.
“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.”
Leveraged crypto ETFs have historically been met with caution due to their volatility and the potential for outsized losses, particularly when held for extended periods. Still, their launch reflects growing demand for more diverse crypto investment vehicles in traditional markets.
Spot XRP ETF Applications Remain in Limbo
While Teucrium prepares to launch its leveraged XRP ETF, the broader market continues to await regulatory clarity on spot XRP funds. Several major asset managers—including Franklin Templeton, WisdomTree, Bitwise, 21Shares, and Canary Capital—have filed for spot XRP ETFs, which remain under review by the U.S. Securities and Exchange Commission.
Teucrium’s own fund documents acknowledge the risks associated with the asset class, citing XRP’s volatility and shifting user engagement as potential headwinds to performance. Despite these concerns, the company is moving forward with its leveraged product, offering investors exposure to XRP ahead of any spot ETF approvals.
The SEC has formally acknowledged multiple spot XRP filings but has yet to issue decisions. Market analysts suggest that the current regulatory climate, while evolving, may open the door for additional XRP-linked investment vehicles in the months ahead.
Teucrium ETF Follows Regulatory Shift and Ripple Legal Resolution
Teucrium’s 2x leveraged XRP ETF debut arrives in the wake of a broader regulatory shift in the U.S., where the Securities and Exchange Commission has recently softened its approach toward cryptocurrency products. In January 2024, the SEC approved the first wave of spot Bitcoin ETFs, which has since sparked a rush of filings for similar products based on other digital assets, including Solana, Dogecoin, Litecoin, and XRP.
Momentum around crypto ETFs has also been fueled by political changes, particularly the inauguration of President Donald Trump. His administration has signaled a more accommodative stance toward digital asset regulation, prompting investment firms to accelerate filings for spot ETFs tied to alternative cryptocurrencies.
Teucrium’s move comes shortly after the SEC formally ended its multi-year legal battle with Ripple Labs, the company behind XRP. In March, the agency dropped its remaining claims against Ripple and accepted a $50 million settlement—marking a pivotal moment that removed a major overhang from the XRP ecosystem and potentially opened the door to broader institutional participation.
Quick Facts
- Teucrium will launch a 2x leveraged XRP ETF (XXRP) on NYSE Arca on April 8, making it the first XRP ETF in the U.S. market.
- The ETF aims to deliver double the daily performance of Ripple’s XRP and is designed for short-term trading with a 1.85% management fee.
- The launch comes ahead of any approved spot XRP ETFs, with several applications still under SEC review.
- The debut follows a wave of crypto ETF filings and reflects a broader shift toward more favorable regulatory treatment under the current SEC leadership.
