Teucrium Etfs is preparing to launch the first exchange-traded fund (ETF) devoted to XRP in the United States on March 8, 2025. Through leveraged exposure to XRP futures, the 2x XRP ETF, also known as XXRP, aims to give investors a more significant opportunity to participate in the cryptocurrency market.
For investors, the ETF offers 2x the daily performance of XRP futures, making it unique among leveraged ETFs for XRP. The primary audience consists of active traders and institutional investors looking to use leverage to boost returns at a higher risk.
Teucrium’s Fit for the XRP ETF
Teucrium has a reputation as a leader in commodity-focused ETFs. Its expertise in derivatives-based products will help it expand into the cryptocurrency sector. Previously, it has succeeded with leveraged funds in agricultural commodities like wheat and corn, positioning it as a trusted name in alternative investment vehicles.
XXRP uses financial instruments, such as swaps and futures contracts, to amplify the daily price movements of XRP futures. As evidence, if the futures rise by 2% in a day, XXRP aims to deliver a 4% return (before fees).
However, returns and losses are both magnified, meaning losses are also magnified if prices decline.
During standard market hours, the fund will be available through traditional brokerage accounts and will be available for trading on the primary stock exchanges. This suggests that investors will not be required to manage cryptocurrency wallets or navigate decentralized exchanges directly.
Doing this provides three main benefits: regulated access to XRP, increased liquidity, and increased leverage opportunities.
Road Ahead for Asset Managers
The move could indicate an industry-wide shift toward creating innovative investment products tailored for digital assets. As evidence, competitors like Grayscale and WisdomTree have also filed applications for various XRP-focused ETFs.
Despite Teucrium being the first mover, competition in this space is on the rise, and other firms may soon follow suit with offerings.
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