Teucrium Shocks Crypto World with First 2x Leveraged XRP ETF — Ahead of XRP Spot ETF Approval!

Updated

April 9, 2025

Gambar Teucrium Shocks Crypto World with First 2x Leveraged XRP ETF — Ahead of XRP Spot ETF Approval!

Jakarta, Pintu News – Amidst the long wait for the approval of a spot ETF for Ripple , there was a big surprise from the US financial markets. Teucrium Investment Advisors officially launched the first 2x leveraged ETF for XRP, named XXRP, on the NYSE Arca exchange.

This surprising move marks a historic moment: the first time there has been an XRP leveraged ETF product in the US, even before the spot XRP ETF was approved by the US Securities and Exchange Commission (SEC). Crypto traders immediately took a keen interest in this asset.

What is XXRP? The ETF that Doubles XRP’s Daily Movement

XXRP is designed to provide double the daily movement of the XRP price, using financial instruments in the form of swap agreements.

This means that if XRP rises by 5% in a day, the value of XXRP will rise by about 10%. With the potential for high returns, this ETF is aimed at active traders who want to take a big risk for quick returns, without having to own XRP directly.

The ETF comes with a management fee of 1.89%, and will be one of the few products in the world that allows leveraged exposure to cryptocurrencies without having to use a derivatives platform.

The launch also indicates growing investor interest in crypto-based ETF products.

Why Was It Able to Launch Before Spot ETFs?

What makes the XXRP launch even more interesting is the fact that the spot XRP ETF has not yet been approved in the United States. Usually, leveraged ETFs come after the spot version gets the regulatory green light.

But in this case, Teucrium took a unique approach by using European-listed XRP ETP benchmarks, such as those of 21Shares, WisdomTree, CoinShares, and Bitwise, as references.

According to Bloomberg analyst Eric Balchunas, this move is highly unusual and has been called a “strange but bold” strategy.

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

Teucrium also announced plans to launch a short version of the ETF, which would allow investors to profit when the price of XRP declines.

XRP Getting Closer to Spot ETFs?

The launch of XXRP comes amid growing optimism towards Ripple’s victory in its legal case against the SEC.

Some parts of the lawsuit have been dropped, and Ripple’s CEO, Brad Garlinghouse, mentioned that some XRP ETFs could come in the second half of 2025. Currently, the chances of spot XRP ETF approval are estimated at 86%.

XRP itself is currently trading at around IDR 29,940 ($1.74), down 7% in the last 24 hours (April 9, 2025). But investor interest remains high. Major companies such as Bitwise, Franklin Templeton, Grayscale, and 21Shares have already submitted ETF proposals.

In fact, analysts predict BlackRock and Fidelity could soon enter the XRP ETF arena.

Overall, Teucrium’s launch of XXRP marks a surprising turning point in the journey of crypto adoption, specifically XRP, in traditional financial markets.

While the SEC is still delaying a decision on spot ETFs, investors now have an alternative to gain exposure to XRP-with twice the potential upside and risk.

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