- Teucrium is on track to launch the first XRP ETF in the United States.
- Demand for XRP ETF or funds is growing amid regulatory clarity on its status.
After weeks of anticipation, the first US XRP Exchange-Traded Fund (ETF) will go live on Tuesday, April 8, 2025. This development has sparked excitement within the crypto space, as they expect to see a positive impact on the market. This product indicates that more investors are demanding XRP beyond the crypto industry.
Details on the XRP ETF
According to a Bloomberg report, Teucrium Investment Advisors will launch the first-ever US XRP ETF (XXRP). The product will offer investors access to twice the daily performance of XRP, the Ripple Labs’ associated coin. If the price of XRP rallies 15%, the ETF will see a jump of about 30%.
In contrast, the ETF will remain stagnant if the price XRP remains flat for longer than a day. The Fund may also lose money even if the price of XRP increases, a sign of its high-risk nature. According to Teucrium’s prospectus, ETF losses would hit 63.2% if annualized volatility reached 100%.
Upon launching, the XRP ETF will begin trading on the NYSE Arca. Teucrium will charge a management fee of 1.85%. XXRP will allow investors to gain direct exposure to XRP, the fourth biggest crypto by market capitalization.
The Fund aims to achieve and maintain exposure to XRP using leverage. Therefore, investors are subject to leverage risks. Investors could potentially lose the principal value of their investment in a single day. Returns from XXRP reset daily, making it more suitable for short-term investors who want to take advantage of volatility.
Teucrium founder and CEO Sal Gilbertie said investors had shown strong interest in an XRP ETF. He hinted that the firm might file to list more crypto ETFs in the future.
Ripple’s Legal Resolution Ignites XRP ETF Launch
Notably, the launch of XXRP precedes the approval of a standard spot XRP ETF, an unusual case for new asset classes. Over a dozen XRP ETF applications are still under review by the US Securities and Exchange Commission (SEC).
As featured in our recent coverage, investment giant Franklin Templeton has joined the race. Other players include Canary Capital, WisdomTree, Bitwise, Grayscale, and 21Shares. As indicated in our earlier discussion, the SEC has previously acknowledged these applications.
Decisions expected in the coming months may open the way for additional XRP investment options. Crypto analyst Amonyx forecasted that XRP could hit $20 upon the approval of multiple XRP ETFs.
As of this writing, the XRP price was $1.87, up 7% from the previous day. While the price is still below its all-time high, the daily surge indicates renewed investors’ interest in the coin.
Meanwhile, the launch of XXRP comes weeks after the US SEC dropped its case against Ripple Labs. The closure of the case has clarified XRP’s legal status as a nonsecurity, which has contributed to rising interest in XRP ETFs.
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