- Teucrium Investment Advisors launches the first US leveraged XRP ETF (XXRP) using swaps to deliver 2x daily returns, with a 1.85% expense ratio.
- Instead of holding XRP directly, the fund amplifies daily price movements—aiming for a 4% return on a 2% XRP gain before fees.
- Timed amid a 22.4% dip in XRP, the ETF targets active traders and institutional investors seeking short-term exposure, potentially paving the way for future spot-based products.
Teucrium Investment Advisors, an alternative asset manager, is launching a new leveraged exchange-traded fund linked to Ripple’s XRP.
The Teucrium 2x Long Daily XRP ETF, which uses swap agreements to deliver twice the daily return of the XRP token, is scheduled to begin trading on Tuesday under the ticker XXRP.
The fund carries a 1.85% expense ratio and marks the first US-listed ETF offering direct exposure to XRP.
Related: Polymarket, JPMorgan See Increased Odds for Recession Following Trump’s Tariff Play
A Path Towards a Spot ETF?
You could say a Futures XRP can be a progressive path towards a spot-based vehicle, as many analysts have observed.
Stephane Ouellette, chief executive officer and co-founder of FRNT Financial Inc., told Bloomberg:
It’s clearly the resolution of the SEC case. That said, there are fewer ‘crypto-native’ use cases for XRP; i.e. there is little utility in holding the physical. So some XRP proponents may still find value in holding the asset in an ETF structure.
Stephane Ouellette, FRNT Financial Inc.How did XRP react? It didn’t. The entire market is in deep red. In the last two weeks, XRP has fallen 22.4%, down to US$1.90 (AU$3.17).
Sal Gilbertie, founder and CEO of Teucrium ETFs, commented on the timing of the launch:
What better time to launch a product than when prices are low? XRP has generated significant investor interest, and its leveraged structure could attract even more.
Sal Gilbertie, Teucrium ETFsHow The XRP ETF Works
The Teucrium 2x Long Daily XRP ETF is structured to provide amplified exposure to XRP’s price movements.
Rather than holding XRP directly, the fund uses derivative instruments such as swaps and, potentially, XRP futures in the future to achieve its objective. This leveraged approach means that if XRP increases by 2% on any given day, the ETF aims to deliver a 4% return before fees, while losses are similarly magnified.
Needless to say, this fund is suited for active traders and institutional investors seeking to capitalise on XRP’s short-term price movements.
Related: Minnesota and Alabama Legislators Propose Bills for State Bitcoin Investments
Credit: Source link
