First US XRP ETF Launches Tuesday With Teucrium Lending Fund
The Teucrium credit ETF comes amid a slew of XRP spot ETF applications that are still under review by the SEC.
Author: Shaurya Malwa | Edited by: Parikshit Mishra Updated: Apr 8, 2025 2:28 PM Published: Apr 8, 2025 6:01 AM
Key points:
- Teucrium Investment Advisors to launch first-of-its-kind US XRP ETF with 2x leverage on NYSE Arca.
- The launch of the ETF comes ahead of the approval of a standard spot XRP ETF, which is unusual for new asset classes.
- Teucrium warns of potential problems due to XRP price fluctuations and decreased activity on the Ripple network.
Teucrium Investment Advisors will introduce the first-of-its-kind XRP exchange-traded fund (ETF) in the US.
The Teucrium 2x Long Daily XRP ETF (XXRP) provides investors with 2x leverage in the closely related Ripple token. XXRP will begin trading on the NYSE Arca on Tuesday, even before the standard “spot” XRP ETF receives regulatory approval.
“It’s quite unusual (maybe a first) for the first ETF of a new asset to use leverage. Spot XRP is still not approved, although our chances are quite high,” Bloomberg Intelligence analyst Eric Balchunas wrote in a post by X.
Typically, ETFs tracking new assets such as cryptocurrencies start with unlevered “spot” funds — those that directly own the underlying asset — before introducing more complex leveraged products.
Teucrium will charge a management fee of 1.85%. The company warned that XRP price fluctuations and decreased usage on the Ripple network could impact the fund's performance, reflecting broader concerns about the token's adoption and market stability.
Ripple's Legal Ruling Fuels ETF Interest
The leveraged Teucrium ETF comes amid a slew of applications for spot XRP ETFs that are still pending with the SEC. Major asset managers such as WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton have filed applications to issue unleveraged XRP ETFs.
The Securities and Exchange Commission (SEC) has previously approved these applications, and the expected decisions expected in the coming months could open up new opportunities for investing in XRP.
XRP has gained 6.5% over the past 24 hours, in line with the overall market gains.
CORRECT (April 8, 14:27 UTC): Added missing words in ETF name in second paragraph.
