- Teucrium launches XXRP, the first U.S. XRP ETF offering 2x daily leveraged returns.
- XRP trades at $1.89 as Teucrium’s XXRP ETF goes live ahead of spot ETF approval.
- Daily reset of XXRP’s exposure targets short-term gains from XRP price volatility.
Teucrium Investment Advisors has introduced the first-ever XRP ETF in the U.S., offering 2x daily leveraged exposure. The fund, trading under ticker XXRP, launched April 8 on NYSE Arca, tracking XRP’s daily price movement.
XRP ETF Launches Ahead of Spot Approval
In a post by BankXRP on X, Teucrium’s leveraged ETF debuted without prior approval for a standard spot XRP ETF. The fund targets two times the daily performance of XRP, using swaps to amplify returns. As of Feb 25, XRP traded at $1.89 with a $111 billion market cap, down 9.10% in 24 hours.
The ETF’s design focuses on short-term gains, resetting exposure daily without compounding returns over multiple sessions. Traders use XXRP to capture intraday volatility, responding to XRP’s frequent price swings. Teucrium set a 1.85% management fee, factoring in expenses and operational costs tied to leveraged exposure.
Besides tracking short-term performance, the fund reacts to XRP’s dynamic market conditions and shifting investor sentiment. XRP remains heavily traded across digital exchanges, with demand fluctuating based on policy shifts and tech developments. Usage trends, volatility, and institutional activity directly impact price direction and ETF outcomes.
Leveraged Crypto Exposure Gains Traction
The leveraged XRP ETF enters a market where multiple asset managers await spot XRP ETF approvals from the SEC. Proposals from 21Shares, WisdomTree, Franklin Templeton, and others remain under regulatory review. Teucrium’s launch marks a rare instance where a leveraged crypto ETF precedes a spot counterpart.
Teucrium acknowledged risks linked to XRP’s declining usage on the Ripple network, which may affect the fund’s performance. Reduced demand could pressure prices and increase volatility, diminishing returns for leveraged investors. Daily rebalancing limits long-term suitability, making the product tailored for active trading strategies.
XRP price action often responds to macroeconomic conditions, regulatory clarity, and digital asset adoption globally. Ripple’s legal progress has renewed interest, supporting ETF demand despite market fluctuations. Short-term momentum in XRP trading volume continues to drive interest in leveraged crypto instruments like XXRP.
