Key Takeaways:
- Teucrium Investment, one of the US’s leading asset managers, will launch a 2x leveraged XRP ETF soon.
- As per the official announcement from the Teucrium group, the ETF will be launched on April 8, 2025.
- The XXRP ETF is based on the native token of Ripple Labs and will be initially listed on NYSE Arca.
- The ETF aims to offer a 2x performance of Ripple’s XRP token.
- Expert analysts like Eric Balchunas are amazed by the recent move, addressing it as the first in the crypto landscape.
The US-based asset manager, Teucrium Investment, is making headlines with its latest announcement on the ETF launch. Many firms in the crypto world are busy with their fund filings. Amid this increased wave of ETF filing requests to the SEC, Teucrium has beaten the spot applications in the market with its XRP-leveraged ETF. According to the official information from the Teucrium group, the company will launch a 2x leveraged XRP ETF to the market on Tuesday, April 8, 2025. The reports that came out on Monday note that the ETF will be linked with the fourth-largest crypto asset by market cap, XRP, the native token of Stewards, Ripple Labs.
The new fund from the Teucrium Investment will be named Teucrium 2x Long Daily XRP ETF, suggests the latest reports. As per the official information, the ETF will be initially launched on NYSE Arca under the ticker XXRP. Along with the Teucrium officials, the exchanges have also certified their approval of launching, listing, and registration of the ETF on their platform.
Teucrium 2x Long Daily XRP ETF: What You Need To Know
According to the available information, the main aim of the Exchange Traded Fund (ETF) is to help investors bet on the daily price movements of XRP in an improved way. It is designed to provide twice the daily performance of the XRP token. This ETF is also created focusing on short-term trading. According to its released prospectus, the XRP ETF will charge a management fee of 1.89%. Initially, several benchmarks sync as the CME CF XRP-Dollar Reference Rate, the CME CF XRO-Dollar Real Time Index, and spot XRP ETFs will be used to determine the price of XRP swap arrangements.
However, currently, there are no US-listed spot XRP ETFs that can be used as a reference asset or that suit the fund’s investment. So, in the initial days, the XRP swaps will be based on various XRP ETFs listed on European exchanges such as 21Shares XRP ETF, Bitwise Physical XRP ETF, Virtue XRP ETF, WisdomTree Physical XRP ETF, and CoinShares Physical XRP ETF.
Prior to the XRP ETF launch, Teucrium Investments had launched a Bitcoin futures ETF in April 2022. Named the Teucrium Bitcoin Futures Fund, the product was approved by the Securities and Exchange Commission (SEC) under the Securities Act of 1933. Moreover, according to reports, Teucrium is also planning to launch a short version of the Teucrium 2x Long Daily XRP ETF. This inverse ETF is expected to allow investors to benefit from the daily decline in prices of XRP.
Expert Opinion On Teucrium 2x Long Daily XRP ETF
Bloomberg Senior ETF Analyst Eric Balchunas has commented on the launch of the Teucrium ETF through his official X post. According to him, this is an unusual launch from Teucrium Investment. In the post that appeared on Monday, Balchunas noted that it is very odd and maybe a first-time event where a new asset’s ETF is first leveraged. “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,” noted Eric Balchunas.