Teucrium to Launch First Leveraged XRP ETF in the U.S. After SEC Approval

Teucrium Investment Advisors LLC has received approval from the Securities and Exchange Commission to introduce the first leveraged XRP exchange-traded fund in the United States.

The Teucrium 2x Long Daily XRP ETF, as Bloomberg reported, will start trading on NYSE Arca on Tuesday, April 8 under the ticker XXRP. The fund’s strategy is to use swap agreements to provide twice the daily return of XRP.

If XRP rises by 1%, for instance, the ETF will gain 2%, and if XRP falls, it will lose twice as much. As stated in the company’s prospectus, it will impose a management fee of 1.89% and is designed for active, short-term investors that have a keen eye on XRP’s daily price fluctuations.

The prices of the swaps will be set by Teucrium using a variety of indices and ETPs, including the CME CF XRP-Dollar Reference Rate and a basket of XRP ETPs listed in Europe, including those from 21Shares, Bitwise, WisdomTree, and CoinShares. Since there aren’t any spot XRP ETFs trading in the US at the moment, these foreign products will serve as the first benchmarks.

Teucrium, an asset manager based in Vermont that manages $311 million in assets, is accustomed to crypto-linked ETF designs because it introduced a Bitcoin futures ETF in April 2022 under the Securities Act of 1933. In order to give traders a means to profit on XRP price drops, the company also intends to launch a 2x Short Daily XRP ETF.

In an April 8 X article, Bloomberg ETF analyst Eric Balchunas noted that it is unusual for an asset’s initial ETF to be a leveraged product. He added that even though there isn’t one now, there are still high hopes for the approval of a spot XRP ETF.

This launch follows a recent $50 million settlement between Ripple Labs and the SEC that ended an extended dispute over XRP’s classification. Brad Garlinghouse, the CEO of Ripple, has expressed growing confidence in XRP ETFs as a result of the SEC’s legal clarity.

Shortly after the regulatory victory, on March 19, he told Bloomberg that spot XRP ETFs might debut in the second half of 2025. Bitwise, Canary Capital, 21Shares, WisdomTree, CoinShares, Grayscale, and Franklin Templeton are among the asset managers who have already submitted applications to the SEC for spot XRP ETFs.