In a significant advancement for cryptocurrency investment products, Teucrium Investment Advisors recently launched the 2x Long Daily XRP exchange-traded fund (XXRP), marking the first leveraged XRP product available in the United States. The ETF made a remarkable debut, achieving $5 million in trading volume on its inaugural day, thereby positioning itself as one of the company’s most successful product introductions. Notably, it recorded a top 5% performance among newly listed ETFs.
The XXRP ETF aims to deliver twice the daily returns of XRP utilizing swap agreements. Due to a lack of suitable US-listed spot XRP ETFs, the reference rates embedded in these swaps are based on several European exchange-traded products. This innovative approach allows investors to gain exposure to XRP dynamics while navigating existing market limitations.
The facilitating factor behind the ETF’s timely launch can be attributed to the recent shift in the U.S. government toward a more pro-cryptocurrency stance. The filing for the ETF was initiated immediately after the prior administration of the Securities and Exchange Commission (SEC) concluded. Seizing the opportunity post the standard 75-day review period, Teucrium wasted no time in launching its product. CEO Sal Gilbertie remarked, “We filed as soon as we could after the old SEC regime left … we launched today,” confirming the ETF had garnered significant interest with nearly a couple hundred thousand shares traded within hours.
The fund’s performance surpassed initial expectations, registering approximately four times the trading activity compared to Volatility Shares’ 2x Solana ETF (SOLT). These remarkable figures underscore Teucrium’s achievement, as noted by Bloomberg ETF analyst Eric Balchunas, who highlighted the launch’s top 5% standing.
Gilbertie expressed his enthusiasm, stating, “It’s been a terrific, very successful launch — our most successful launch day to date for any fund we’ve ever done.” He attributed the overwhelming excitement to the perception of being overlooked prior to this launch.
Interestingly, while the ETF primarily gains exposure to XRP through swaps linked to European XRP ETPs, it can also utilize alternative XRP-related instruments, including futures. However, Gilbertie underscored that this product is intended primarily as a short-term trading tool. “This is absolutely a short-term trading tool — ideally for one day,” he stated, cautioning investors that the ETF’s structure could lead to losses if XRP prices linger, remain stagnant, or decline.
Beyond the 2x Long Daily XRP ETF, Teucrium is already exploring the launch of an inverse XRP ETF, the Teucrium 2x Short Daily XRP ETF, as indicated in a prospectus. This forthcoming product would enable investors to capitalize on potential declines in XRP prices; however, Gilbertie mentioned that the firm plans to carefully assess market demand before proceeding with this development.
In conclusion, Teucrium Investment Advisors’ XXRP ETF represents a significant milestone for both the firm and the broader crypto investment landscape. Its innovative structure and strong launch performance reflect a growing appetite for sophisticated investment products within the digital currency sector.
