Teucrium Investment Advisors plans to introduce the first XRP-based exchange-traded fund to U.S. markets Tuesday, marking a significant milestone for the cryptocurrency. The leveraged ETF product, trading under ticker XXRP on NYSE Arca, aims to provide investors with double the daily return of the XRP token at a 1.85% management fee.

What to Know:

• The Teucrium 2x Long Daily XRP ETF will be the first leveraged XRP product available on U.S. exchanges
• The fund currently holds $2 million in net assets ahead of its April 8 launch
• Several financial institutions have pending applications for spot XRP ETFs under SEC review

First XRP Leveraged ETF Set to Launch on NYSE Arca

XXRP represents an unusual first entry into the market for a digital asset, according to industry experts. The alternative asset manager characterizes the product as appropriate for investors with "a short-term high-conviction view on XRP prices," according to statements on the company's website.

Teucrium founder and CEO Sal Gilbertie told Bloomberg on April 7 that customer demand drove the creation of the XRP ETF. "What better time to launch a product than when prices are low?" Gilbertie said, referencing the broader market downturn influenced by U.S. President Donald Trump's tariff policies.

He also indicated the company might file for additional cryptocurrency ETF listings in the future, responding to what he described as strong investor interest.

The launch comes as XXRP holds approximately $2 million worth of net assets prior to public trading. Founded in 2010, Teucrium has established itself primarily in agricultural commodities, offering ETFs tracking markets such as corn, soybeans, sugar and wheat. The firm has accumulated over $310 million in assets under management during its 14-year history.

Bloomberg ETF analyst Eric Balchunas characterized the leveraged product launch as "very odd," noting it's unusual for an asset's first ETF to debut in leveraged form. Despite this unconventional approach, Balchunas maintained that the probability of a spot XRP ETF receiving regulatory approval remains "pretty high." In February, Balchunas and fellow Bloomberg analyst James Seyffart estimated 65% approval odds for a spot XRP ETF in 2025.

Several major financial institutions currently have spot XRP ETF applications under review by the Securities and Exchange Commission.

These include proposals from Grayscale, Bitwise, Franklin Templeton, Canary Capital and 21Shares. Prediction market Polymarket currently indicates a 75% likelihood that the SEC will approve a spot XRP ETF sometime in 2025.

The timing of Teucrium's ETF launch follows the recent conclusion of a four-year legal battle between Ripple Labs, the creator of XRP, and the SEC over the token's security status. This resolution has apparently created a more favorable regulatory environment for XRP-based financial products. The case, which had significant implications for how digital assets are classified under securities law, concluded last month.

ETF Structure and Market Positioning

According to details provided by Teucrium, the 2x Long Daily XRP ETF seeks to double the daily performance of XRP. This structure typically appeals to short-term traders rather than long-term investors due to the compounding effect of daily returns in leveraged products. The fund carries an annual expense ratio of 1.85%, positioned at the higher end of the ETF fee spectrum.

As the first leveraged crypto product specifically tracking XRP, XXRP represents Teucrium's expansion beyond its traditional focus on agricultural commodities. The fund's launch occurs during a period of increasing institutional interest in cryptocurrency exposure through regulated exchange products.

The XXRP ETF provides an alternative to direct cryptocurrency ownership while offering potential amplified returns through its leveraged structure.

However, leveraged ETFs typically require active management by investors due to their daily rebalancing mechanism. This characteristic makes them more suitable for traders with strong directional views rather than passive investment strategies.

Final Thoughts

Teucrium's launch of the first XRP-based leveraged ETF represents a significant development in the cryptocurrency investment landscape. While the leveraged structure is unusual for an asset's first ETF, it arrives as market participants increasingly anticipate regulatory approval for spot XRP exchange-traded products in the coming year.