The XRP community is buzzing with anticipation as the first leveraged XRP exchange-traded fund (ETF) officially hits the U.S. market today. The fund is expected to introduce a new layer of market exposure for traders eager to capitalize on XRP’s daily price movements.
Teucrium Investment Advisors will launch the Teucrium 2x Long Daily XRP ETF, which begins trading on NYSE Arca under the ticker XXRP. This ETF is designed to deliver twice the daily return of XRP through swap agreements rather than holding the token directly.
According to Bloomberg, this product targets experienced traders looking to exploit XRP’s volatility. A 10 percent gain in XRP could potentially result in a 20 percent rise in XXRP on the same day, though the reverse scenario also applies during downturns.
Daily reset returns at the ETF lead triggers the performance disparities compared to XRP’s cumulative results because of compound effects. Investors who maintain ownership of this fund can experience losses regardless of observed trends in the price of XRP, even when the token price remains static or shows upward movement.
ETF obtains pricing information from the CME CF XRP-Dollar Reference Rate and Real-Time Index to compute prices. Since no U.S.-listed spot XRP ETFs exist, the fund obtains pricing from European XRP products, including 21Shares, WisdomTree, Virtune, CoinShares, and Bitwise.
The Teucrium ETF operates with $311 million in assets while catering to traders who already understand risks and short-term investments. The fund maintains a 1.89 percent management fee, and managers expect to release a 2x short version aimed at profiting from XRP’s daily price devaluation.
Market Risks and Legal Progress Could Shape XRP’s ETF Future
While XXRP offers a new way to trade XRP, it comes with elevated risk tied to market volatility. Teucrium’s filings highlight that investors could still face significant losses if XRP remains flat but experiences high volatility. At 100 percent annualized volatility, projected losses could reach 63.2 percent within one year.
XRP is currently priced at $1.86, showing a modest 12.34 percent gain in the past 24 hours, according to CoinMarketCap. The ETF launch will arrive when sentiment around XRP improves due to Ripple Labs’ ongoing legal developments with the SEC.
Brad Garlinghouse, the CEO of Ripple, announced to the public that the company’s legal battle with the SEC is entering its last phase. Multiple spot XRP exchange-traded funds would potentially launch in the United States during the second half of 2025 following regulatory betterment.
Asset managers Franklin Templeton and Grayscale, 21Shares, Bitwise, and WisdomTree have filed requests to establish spot XRP ETFs. Major financial institutions BlackRock and Fidelity plan to enter the race after the Ripple-SEC case settles.
The launch of the XXRP ETF is a decisive milestone that brings XRP into standardized financial markets. The availability of leveraged exposure to U.S. investors directs attention toward market adoption and price volatility alongside regulatory considerations for the future.
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