First XRP ETF to Launch in US: Teucrium’s 2x Leveraged Fund Debuts on NYSE Arca

TLDR

• Teucrium will launch the first XRP ETF in the US – a 2x leveraged fund (XXRP) on NYSE Arca on April 8
• The ETF will provide twice the daily returns of XRP with a 1.85% management fee
• This marks the unusual case of a leveraged ETF launching before a spot ETF for a new asset class
• Multiple firms including WisdomTree, Bitwise, and Franklin Templeton have filed for spot XRP ETFs
• Analysts estimate a 65-75% chance of spot XRP ETF approval in 2025

Teucrium Investment Advisors is making history by launching the first-ever XRP exchange-traded fund (ETF) in the United States. The Teucrium 2x Long Daily XRP ETF (XXRP) will begin trading on the NYSE Arca exchange on April 8, 2025.

This ETF will provide investors with leveraged exposure to XRP. It aims to deliver twice the daily return of the Ripple-linked token, with a management fee of 1.85%.

The fund currently holds $2 million in net assets. It will use swaps to mirror the performance of XRP rather than holding the token directly.

Breaking From Tradition

Industry experts have noted the unusual nature of this launch. Bloomberg Intelligence analyst Eric Balchunas called it “very odd (maybe a first) that a new asset’s first ETF is leveraged.”

Typically, ETFs for emerging assets like cryptocurrencies start with unleveraged “spot” funds. These spot funds directly hold the underlying asset.

More complex products like leveraged ETFs usually come later. In this case, the leveraged product is arriving before any spot XRP ETF has received regulatory approval.

Teucrium founder and CEO Sal Gilbertie told Bloomberg that investors had shown strong interest in an XRP ETF. He also expressed satisfaction with the timing of the launch.

“What better time to launch a product than when prices are low?” Gilbertie said. This refers to the recent market downturn driven partly by US President Donald Trump’s tariffs.

Understanding The Risks

The XXRP fund is designed as a short-term trading vehicle for sophisticated investors. Its returns reset daily, making it suitable for those looking to capitalize on short-term price movements.

Traders should be aware of compounding effects. For example, if XRP rises 10% one day and falls 10% the next, investors will still end up with a loss.

According to Teucrium’s prospectus, the ETF could face massive losses in highly volatile conditions. If XRP’s annualized volatility reaches 100%, the fund could see losses of 63.2% even if the token price remains flat over time.

The firm has cautioned about challenges related to XRP’s price volatility. They also noted concerns about declining usage on the Ripple network.

Even during an XRP rally, high volatility could erode the fund’s returns over longer timeframes. This makes it important for investors to understand the product’s mechanics.

The Broader ETF Landscape

Teucrium’s leveraged ETF comes amid numerous applications for spot XRP ETFs. These applications are currently under review by the Securities and Exchange Commission (SEC).

Major fund managers have submitted proposals for unleveraged XRP ETFs. These include WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton.

Industry analysts remain optimistic about spot XRP ETF approvals. Bloomberg analysts Balchunas and James Seyffart have assigned 65% odds to a spot XRP ETF approval in 2025.

A 2x XRP ETF is launching tmrw in US, the first-ever XRP ETF on the market. Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, altho our odds are pretty high. Story via ⁦⁦@isabelletanlee⁩ pic.twitter.com/Eg4Wq5Y1Qi

— Eric Balchunas (@EricBalchunas) April 7, 2025

The predictions market Polymarket is even more optimistic. It currently shows a 75% chance of SEC approval for a spot XRP ETF in 2025.

The recent resolution of Ripple Labs’ long-running legal battle with the SEC has improved the outlook for XRP-based investment products. This court case, which centered on XRP’s security status, concluded last month.

Teucrium itself has built a solid reputation in the ETF space. Founded in 2010, the firm has amassed over $310 million in assets under management.

The company primarily offers ETFs tracking agricultural commodities. These include products based on corn, soybeans, sugar, and wheat.

XRP has shown positive price action recently. The token is up 6.5% in the past 24 hours, moving in line with the broader crypto market rally.

The launch of this ETF could potentially attract more investor attention to XRP. It may also pave the way for additional XRP investment vehicles in the future.