According to news sources, Teucrium Investment Advisors have launched the first-ever leveraged XRP ETF in the US. The product, called the Teucrium 2x Long Daily XRP ETF and trading under the ticker XXRP, is a big deal for both the digital asset space and financial institutions looking to get into XRP. With a mandate to double the daily return of XRP, the ETF is a high risk, high reward product as legal clarity starts to shape market expectations.
The New York Stock Exchange Arca has reportedly approved the fund’s listing and registration, giving Teucrium the greenlight to launch what could be the first of its kind in the altcoin ETF space. According to the fund’s prospectus, the expense ratio is 1.85%, which is a premium in a space that is still uncharted for leveraged crypto exposure.
Teucrium’s Big Bet on Leveraged XRP Exposure
Teucrium is no stranger to innovation. After launching a Bitcoin Futures ETF in April 2022 under the SEC’s 1933 Act when most crypto ETFs were still waiting for regulatory approval, the firm is now applying that expertise to a more targeted altcoin strategy.
“The market dynamics around XRP are changing fast,” said Sal Gilbertie, Teucrium’s CEO, in a recent statement. “There’s institutional demand for leveraged access to digital assets, especially now that XRP is back in institutional conversations.”
Gilbertie pointed to low entry prices and regulatory clarity as the reasons behind the product launch.
XXRP will double the daily price movement of XRP, using swap agreements referencing established XRP price benchmarks. These include the CME CF XRP-Dollar Reference Rate, the CME CF Real-Time Index, and pricing data from European XRP ETPs since there is no US-listed spot XRP ETFs to use as underlying assets.
European ETPs are the Temporary Backbone for XXRP
While there is no US listed spot XRP ETF, Teucrium’s ETF team is circumventing this by anchoring the swaps to a range of European listed XRP exchange-traded products (ETPs). These include: 21Shares XRP ETP, Bitwise Physical XRP ETP, Virtune XRP ETP, WisdomTree Physical XRP ETP, CoinShares Physical XRP ETP.
This allows the fund to operate without a domestic spot ETF, in line with Teucrium’s history of structuring complex products that stay within the rules while tapping into market sentiment.
Legal Clarity Arrives as Ripple’s Lawsuit Nears Conclusion
The timing of XXRP’s launch is not a coincidence. The long running lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is nearing its end, and XRP related products are getting a boost.
Just weeks before the ETF announcement, sources reported that Ripple settled with the SEC and will pay a $50 million fine without admitting liability. This resolves the regulatory uncertainty that had been keeping XRP out of institutional portfolios.
Ripple CEO Brad Garlinghouse said the company is “on the final stretch” and the resolution “removes one of the biggest overhangs on XRP’s future.” He expects the second half of 2025 to see a wave of spot XRP ETFs in the US.
The SEC’s shift to recognize XRP as a non-security for institutional use has also emboldened big asset managers to file their own. This is starting to mirror the approval arc of spot Bitcoin ETFs in 2024.
XRP ETFs Heat Up Among Big Asset Managers
As the regulatory tide turns, the rush to get in on XRP investment products is on. Multiple firms including 21Shares, Bitwise, WisdomTree, CoinShares, Franklin Templeton and Grayscale have already filed for spot or futures based XRP ETFs.
ProShares and Volatility Shares are also seeking approval for XRP-linked leveraged and inverse products. This is a sign of a deepening appetite for both long and short-directional plays on the asset.
Nate Geraci, president of The ETF Store, said in a recent note
“it’s only a matter of time” before the big boys like BlackRock and Fidelity enter the fray. “If this plays out like Bitcoin ETFs we’ll see the big players make moves on XRP once the legal clarity is finalized” he noted.
Analysts say XRP in institutional ETFs could unlock new liquidity especially from pensions, endowments and wealth management firms that have been avoiding digital assets due to compliance issues.
Short Exposure Coming: Teucrium to Launch Inverse XRP ETF
Teucrium isn’t done with the XXRP fund. According to the filing, the firm is launching a 2x Short Daily XRP ETF, which will allow investors to profit from daily declines in XRP’s value. This inverse leveraged product will be for sophisticated traders or hedging strategies especially in times of macro uncertainty or altcoin volatility.
The dual offering of long and short-leveraged XRP ETFs will give the US market its first complete toolkit for XRP exposure. Something already available for Bitcoin and Ethereum through ProShares and Volatility Shares.
By offering both directional biases, Teucrium is positioning itself as an early mover in the altcoin ETF derivatives space ahead of the bigger firms that are still waiting to see how the market and regulators react.
Price Action and Investor Sentiment
As of press time XRP is $1.87, up 5% in the last 24 hours according to CoinMarketcap. Market reaction to the Teucrium ETF has been quiet so far but analysts expect volume to pick up as awareness spreads and the broader market stabilizes.
Recent sentiment indicators show inflows into XRP products especially in Europe. With the SEC softening and Ripple’s legal clarity, analysts think XRP could be the next major digital asset to benefit from ETF driven institutional inflows after the spot Bitcoin ETFs this year.
Conclusion
Teucrium’s XXRP fund is a big moment for crypto ETFs in the US. With legal clarity on XRP and investor demand for leveraged exposure growing, this fund could be the start of a wave of innovation in altcoin products. As institutional players start to circle the XRP ETF space, Teucrium’s first mover advantage may be the key to the future of crypto asset management.
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FAQs
What is the Teucrium 2x Long Daily XRP ETF?
It’s the first XRP ETF in the US, designed to offer 2x daily return of XRP through swap based exposure.
How does the XXRP ETF generate its leveraged performance?
It uses swap agreements based on benchmarks like the CME CF XRP-Dollar Rate and pricing data from European XRP ETPs.
What is the expense ratio of the fund?
The ETF has a 1.85% management fee.
Is Teucrium launching other XRP-related products?
Yes. A 2x Short Daily XRP ETF is coming, offering inverse exposure to XRP price movements.
Why now?
Teucrium says XRP is cheap, investor demand is rising and regulatory clarity from Ripple’s settlement with the SEC.
Glossary
XRP: A digital currency by Ripple Labs for fast cross-border payments.
Swap Agreements: Financial instruments to exchange cash flows; in this case to mimic XRP.
Inverse ETF: An investment fund that goes up when the underlying asset goes down for short exposure.
References
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