Teucrium Launches Historic XRP ETF Amid Regulatory Uncertainty

Vermont, USA — Teucrium Investment Advisors has announced the launch of the Teucrium 2x Long Daily XRP ETF (XXRP), marking the first-ever XRP-based exchange-traded fund (ETF) to debut in the United States. The fund, designed to provide investors with twice the daily performance of XRP, will begin trading on the NYSE Arca on Tuesday, April 8, 2025, ahead of any approval for a standard spot XRP ETF from regulatory authorities.

“Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, although our odds are pretty high,” said Eric Balchunas, a Bloomberg Intelligence analyst, in a recent post on social media platform X. Typically, ETFs that track emerging assets like cryptocurrencies start with unleveraged funds that directly hold the underlying asset before more complex leveraged products are introduced.

Teucrium will implement a management fee of 1.85% for the fund. However, the firm has cautioned that XRP’s price volatility and declining usage on the Ripple network could present challenges to the ETF’s performance, highlighting broader concerns regarding the token’s market stability and adoption.

The launch of Teucrium’s leveraged ETF occurs amidst a wave of applications for spot XRP ETFs currently under review by the U.S. Securities and Exchange Commission (SEC). Major investment firms such as WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton have submitted proposals to create unleveraged XRP ETFs that would directly hold the asset. Both the SEC and the cryptocurrency market are reacting to the shifting regulatory environment as the agency softens its stance on crypto following changes in leadership in the wake of the recent presidential election.

“There has been strong investor interest in XRP, and we believe that this leveraged angle will drive even more,” said Sal Gilbertie, founder and CEO of Teucrium. The CEO underscored the current market opportunity, stating, “What better time to launch a product than when prices are low?”

As XRP experiences a 6.5% increase in value over the past 24 hours, the market must also consider its mixed performance over recent weeks, including an 11.2% decline within the last seven days. Despite these fluctuations, XRP’s annual growth remains impressive, with a 215% increase, largely attributed to favorable legal developments and heightened speculation surrounding ETF approvals.

The Teucrium 2x Long Daily XRP ETF aims to attract short-term traders looking to capitalize on XRP’s price movements without directly owning the token. The launch follows the SEC’s decision to drop its long-standing case against Ripple Labs, the company behind the creation of XRP, which may strengthen the case for future XRP investments.

Market observers are keenly awaiting further decisions from the SEC regarding the approval of additional XRP ETFs, as confidence in the regulatory landscape appears to be shifting positively.