Teucrium Investment Advisors Launches First Leveraged XRP ETF in the U.S.
Teucrium Investment Advisors has made waves in the cryptocurrency investment landscape with the launch of its 2x Long Daily XRP exchange-traded fund (XXRP). Marked as the first leveraged XRP product available in the U.S., this innovative ETF debuted with an impressive $5 million in trading volume on its first day, securing its position as one of the company’s most successful launches and ranking in the top 5% for new ETFs.
Understanding the 2x Long Daily XRP ETF
The XXRP ETF is engineered to provide investors with double the daily returns of XRP via swap agreements. In the current landscape where suitable U.S.-listed spot XRP ETFs are absent, this innovative product references rates that draw from various European exchange-traded products, thereby allowing American investors access to leveraged XRP exposure.
A Pro-Crypto Shift in U.S. Regulatory Landscape
The emergence of this ETF coincides with a significant shift in the U.S. government’s approach to cryptocurrency regulation. The filing for XXRP occurred immediately following the departure of the previous Securities and Exchange Commission (SEC) administration. Teucrium capitalized on this change, launching the ETF as soon as the standard 75-day review period elapsed.
CEO Insights on the Launch Day
Sal Gilbertie, the CEO of Teucrium, expressed excitement over the ETF’s launch, stating, “We filed as soon as we could after the old SEC regime left … we launched today.” He also revealed that the ETF quickly gained traction, nearing “a couple hundred thousand shares” traded within hours.
Strong Initial Performance Compared to Competitors
The XXRP ETF’s trading activity outperformed Volatility Shares’ 2x Solana ETF (SOLT) by approximately four times, showcasing its robust demand and significant interest among investors. Bloomberg ETF analyst Eric Balchunas highlighted this performance, placing XXRP in the top 5% of newly launched ETFs.
A Unique Investment Vehicle for Traders
Teucrium’s new ETF gains XRP exposure primarily through swaps linked to European XRP ETPs, along with the potential to use various XRP-related instruments, such as futures. However, Gilbertie cautioned that this product is intended primarily for short-term trading rather than long-term holding. “This is absolutely a short-term trading tool — ideally for one day,” he noted, emphasizing the risks associated with prolonged holding periods.
Future Prospects: Inverse XRP ETF on the Horizon
Looking ahead, Teucrium, which currently manages approximately $320 million spread across 12 ETFs, is already developing plans for an inverse XRP ETF, tentatively named the Teucrium 2x Short Daily XRP ETF. This product would enable investors to capitalize on potential declines in XRP prices. However, Gilbertie indicated that their team would monitor market demand before proceeding with this new offering.
As the cryptocurrency market continues to evolve, the launch of the Teucrium 2x Long Daily XRP ETF signifies a pivotal moment for both investors and the broader regulatory environment, highlighting the shifting dynamics in cryptocurrency investment options available in the United States.
