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In a daring step reflecting fresh faith in the crypto space, Teucrium Investment Advisors has launched the United States’ first leveraged exchange-traded fund (ETF) linked to XRP. The movement follows lowered regulatory pressure and growing demands by investors to create history regarding altcoin-backed investment products in mainstream finance. XXRP Starts Trading With 2x Daily Exposure to XRP Traded under the symbol XXRP, the Teucrium 2x Long Daily XRP ETF launched on NYSE Arca on April 8.
The fund aims to provide double the daily return of the XRP token through swap contracts instead of direct holdings of the security. It has a 1.85 percent management fee and expense ratio, and is aimed at short-term traders with high-risk tolerance.
Aggressive Traders, Not Long-Term Investors Teucrium CEO Sal Gilbertie characterized the ETF as a product designed specifically for active market players, warning against long-term holding because of the compounding risk of daily-reset leveraged products. “This isn’t a buy-and-hold fund,” Gilbertie said in an interview. “It’s a tool for those with a strong, short-term view on XRP.
” He noted that retail investors, especially those on platforms such as Robinhood, now have access to leveraged crypto exposure without the sophistication of margin accounts. Strong First-Day Interest and Market Timing Despite launching during a broader market pullback triggered by tariff-related tensions under former President Donald Trump, the ETF saw strong early demand. Gilbertie said the product has already accumulated US$2 million in net assets and called it the firm’s most successful ETF debut in terms of first-day activity.
“What better time to enter than when prices are low?” he said. Regulatory Shift Opens New Doors The launch follows closely after Ripple Labs’ legal battle with the U.S.
Securities and Exchange Commission (SEC) finally ended. Gilbertie attributed the approval of the ETF to a change in SEC leadership, which he stated has taken a more positive approach towards crypto products. Teucrium, with its historical background of commodity ETFs like corn, wheat, and soybeans, has situated the XRP fund as it rolls out a general expansion into digital assets.
The ETF earns exposure to XRP through the use of European-listed XRP products swaps with the prospect to move on into futures once the markets reach maturity. Present and Expectation Regarding Spot ETFs While a leveraged XRP ETF has been launched, several applications for spot ETFs by Grayscale, Bitwise, and Franklin Templeton are still pending review. Analysts forecast the probability of approval for a spot XRP ETF in 2025 to be somewhere between 65 percent-75 percent.
A Step Toward Crypto’s Integration With Traditional Finance Teucrium’s newest offering is a demonstration of the increased convergence between traditional and crypto financial markets. As regulatory certainty improves, instruments such as XXRP can potentially lead to mass adoption of blockchain-based assets . Gilbertie, optimistic about XRP’s functionality in cross-border finance, says the future for capital markets belongs to technologies that provide speed, efficiency, and compliance within regulated environments.
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