Teucrium Launches First 2x Leveraged XRP ETF Amid SEC Application Wave

Leveraged XRP ETF to Launch First Before Spot Products Gain Approval

  • Teucrium Investment Advisors is launching a 2x leveraged XRP ETF on April 8, listing on NYSE Arca.
  • This leveraged ETF is launching before any spot XRP ETF has been approved by the SEC.
  • Multiple asset managers have applied for spot XRP ETFs following the SEC’s dismissal of its case against Ripple.

Teucrium Investment Advisors is set to launch a 2x leveraged XRP exchange-traded fund (ETF) on April 8, according to information posted on the company’s website. The XXRP ETF will track the performance of XRP, the native cryptocurrency of Ripple Labs, and will be listed on the NYSE Arca exchange.

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The leveraged ETF aims to deliver twice the daily performance of XRP and comes with a management fee of 1.85%. As stated in Teucrium’s fund documentation, the product is designed for short-term trading and carries risks related to market volatility and potential declining usage of the underlying cryptocurrency.

Bloomberg Senior ETF Analyst Eric Balchunas highlighted the unusual nature of this development on X (formerly Twitter). “Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, although our odds are pretty high,” he wrote.

Spot XRP ETFs in the Pipeline

The leveraged ETF launch comes as several major fund managers await decisions on their spot XRP ETF applications. WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton have all submitted proposals to the Securities and Exchange Commission (SEC).

The SEC has acknowledged multiple spot XRP ETF applications, with decisions expected in the coming months that could bring additional XRP investment vehicles to market.

Changing Regulatory Climate

Teucrium’s ETF debut follows significant shifts in the crypto regulatory landscape. The SEC approved the first batch of spot Bitcoin ETFs in January 2024, which has triggered increased interest in ETFs tied to other cryptocurrencies including Solana, Litecoin, Dogecoin, and XRP.

The presidential transition has coincided with a surge in ETF applications from investment firms looking to capitalize on what appears to be a more favorable regulatory environment for cryptocurrency products.

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In March, the SEC dropped its years-long case against Ripple, which ended with the company paying a $50 million fine. This legal resolution has cleared a significant hurdle that previously stood in the way of XRP-based investment products.

At the time of this development, XRP was trading at $1.87, representing a 3% decrease over the previous 24 hours.

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