Teucrium Investment Advisors Launches First Leveraged XRP ETF in US
With meticulous research and insights from esteemed industry professionals, Teucrium Investment Advisors has introduced a groundbreaking product in the financial sphere. Their new offering, the Teucrium 2x Long Daily XRP ETF, marks the first leveraged exchange-traded fund (ETF) tied to XRP in the United States. This innovative fund will commence trading today on NYSE Arca under the ticker XXRP.
Introduction of a Leveraged XRP ETF in the American Market
This pioneering ETF is designed to achieve double the daily returns by employing synthetic exposure through swap agreements instead of direct spot market investments. As per the prospectus submitted to the United States Securities and Exchange Commission (SEC), the fund does not engage directly with XRP or its futures contracts. Rather, it utilizes “total return swap agreements” that are based on a calculated daily value, derived from a combination of third-party XRP benchmarks and European exchange-traded products (ETPs).
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Although US-listed spot ETFs are still not available, the fund’s pricing strategy is dependent on internationally traded instruments. These instruments include the 21Shares ETP, Bitwise Physical ETP, Virtune ETP, WisdomTree Physical ETP, and CoinShares Physical ETP. Additionally, the valuation framework incorporates the CME CF XRP-Dollar Reference Rate and the CME CF XRP-Dollar Real Time Index to ensure alignment with institutional standards.
Complex Structure and Management Fee
Teucrium has established a management fee of 1.85% for this fund, placing it at the higher end of the cost spectrum among crypto-linked ETFs. This is attributed to the fund’s intricate structure and dependence on multiple synthetic reference instruments. The SEC’s quiet certification of the fund’s registration, along with NYSE Arca’s listing approval, indicates a growing regulatory acceptance of derivative-based crypto products, even as spot ETFs remain under scrutiny.
Teucrium’s Legacy and Future Plans
Teucrium, a firm regulated by the Commodity Futures Trading Commission (CFTC) with $311 million in assets under management, is renowned for its commodity ETFs, particularly those in agricultural markets. Previously, the firm made headlines with the Teucrium Bitcoin Futures Fund, one of the initial Bitcoin ETFs approved under the Securities Act of 1933. Currently, Teucrium is also in the process of developing a bearish counterpart—the Teucrium 2x Short Daily ETF—aimed at offering leveraged inverse exposure to daily price declines, which is still undergoing registration.
Ripple’s Anticipation of Future ETFs
The launch of this leveraged XRP ETF comes at a time of increasing momentum for spot altcoin ETFs in the U.S. On April 3, the U.S. Senate Banking Committee voted narrowly to advance the nomination of Paul Atkins as the new chair of the SEC. Ripple CEO Brad Garlinghouse recently expressed his expectation for multiple ETFs to launch in the U.S. by the second half of 2025. A surge in filings from prominent asset managers such as Bitwise, 21Shares, WisdomTree, CoinShares, and Franklin Templeton has been submitted to the SEC, all seeking approval for spot XRP ETFs.
Market Giants Eyeing the Opportunity
The potential for financial titans like BlackRock and Fidelity to enter this space has not gone unnoticed. Nate Geraci, President of The ETF Store, noted that he anticipates these investment giants to make moves in the market as well. At the time of this report, XRP was trading at $1.90.
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