Teucrium Investment is making history with the launch of the Teucrium 2x Long Daily XRP ETF (XXRP), the first-ever XRP-based exchange-traded fund (ETF) in the United States. Scheduled to begin trading today, April 8, 2025, on NYSE Arca, this leveraged ETF offers investors double the daily returns of XRP, marking a significant milestone in the cryptocurrency market.

Image Source: Teucrium

What Is XXRP?

The Teucrium 2x Long Daily XRP ETF is designed for active traders and institutional investors seeking amplified exposure to XRP’s daily price movements. Using swap agreements rather than directly holding XRP, the fund aims to deliver twice the daily return of the cryptocurrency. For instance, if XRP’s price increases by 1%, XXRP will rise by 2%, but losses are equally magnified.

With an expense ratio of 1.85% and initial net assets of $2 million, XXRP targets short-term traders with high conviction in XRP’s price trajectory. However, Teucrium cautions that this product is best suited for experienced investors due to its leveraged structure and potential volatility.

Timing Amid Market Volatility

The launch comes at an intriguing time for XRP. Despite a recent 22.4% dip in its price, XRP has shown signs of recovery, climbing 6.5% in the last 24 hours to trade around $1.86. The ETF arrives shortly after the resolution of Ripple Labs’ four-year legal battle with the SEC over XRP’s security status, a case that concluded last month, clearing regulatory hurdles for crypto-related products.

Why Is This Launch Significant?

The debut of XXRP is groundbreaking because it precedes the approval of any spot XRP ETFs in the U.S., which typically offer direct exposure to an asset without leverage. Bloomberg ETF analyst Eric Balchunas noted: “Very odd (maybe a first) that a new asset’s first ETF is leveraged.”

Image Source: Eric Balchunas

This unusual move highlights growing investor interest in regulated crypto products and reflects optimism about future spot ETF approvals. Several major financial firms including WisdomTree, Bitwise, Franklin Templeton, and 21Shares have filed applications for spot XRP ETFs currently under SEC review. Analysts predict a 65-75% chance of approval in 2025.

How XXRP Works

Instead of holding XRP directly, XXRP uses derivative instruments such as swaps to achieve its leveraged performance. This approach amplifies both gains and losses, making it a high-risk but potentially high-reward investment vehicle. The fund also leverages benchmarks like the CME CF XRP-Dollar Reference Rate and European-listed ETPs from firms like WisdomTree and CoinShares.

Teucrium plans to expand its offerings further by introducing a 2x Short Daily XRP ETF, allowing traders to profit from declines in XRP’s price, a move that underscores its commitment to catering to diverse market strategies.

Future Outlook

The launch of XXRP signals increased regulatory clarity for crypto ETFs following Ripple Labs’ legal victory against the SEC. This clarity has paved the way for innovative products like leveraged ETFs while boosting investor confidence in cryptocurrency markets.

Teucrium’s entry into the crypto space builds on its expertise as an alternative asset manager with over $310 million in assets under management. Known for agricultural commodity ETFs tracking corn, soybeans, sugar, and wheat, Teucrium is now diversifying into digital assets with this bold move.