XRP ETF Launches on NYSE Arca America with 2x Leveraged Product

Bittime - The crypto world has recorded new history again. Teucrium Investment Advisors, a United States-based asset management firm, officially launched its 2x leveraged XRP ETF on April 8, 2025 on NYSE Arca. This product is named XXRP ETF, and offers twice the exposure to the daily performance of the XRP token, which is Ripple Labs' native crypto asset.

This launch was quite a surprising step. Because, this is the first ETF for XRP and immediately comes in a leveraged version, before there was approval for a spot XRP ETF from the US Securities and Exchange Commission (SEC). Eric Balchunas, Senior ETF Analyst from Bloomberg, even called this move "very unusual" in a tweet on the X platform (formerly Twitter).

What Is a 2x Leveraged XRP ETF?

This ETF is designed to provide daily returns that are twice the price movement of XRP. This means that if XRP rises 1% in a day, this ETF can rise by around 2%, and vice versa if the price falls. This product is aimed at short-term traders who want to maximize opportunities from XRP volatility. Teucrium charges a management fee of 1.85% for this product.

In its prospectus, Teucrium openly acknowledges the high risks inherent in this product, such as extreme volatility and a possible decline in the use of XRP that could adversely impact the ETF's performance.

Read also: Pi Coin Price: Will Pi Network Bounce or Rug Pull?

Launch Context: Ripple and Regulation

The launch of this ETF comes just weeks after Ripple Labs resolved a long-standing legal dispute with the SEC. Ripple agreed to pay a $50 million fine to close a case related to the sale of XRP deemed unregistered securities to institutional investors.

Apart from that, this launch also took place in the midst of heated competition for XRP spot ETF products which are awaiting SEC approval. Several big names such as WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton have submitted their product proposals to the authorities. The SEC itself has recently begun to open the door wider to crypto ETFs, following the approval of the first wave of spot Bitcoin ETFs in January 2024.

Donald Trump, who has returned as US president since January 2025, is also said to be pushing for changes in the regulatory climate that is friendlier towards crypto, so that more financial companies dare to launch products related to digital assets, including altcoins such as XRP, Solana, Litecoin and Dogecoin.

Read also: Pepe Coin: Analysis and Prediction of its Price in the Near and Long Term

Investor Prospects and Expectations

Even though XRP is currently trading at $1.87 or down around 3% in the last 24 hours, the presence of this leveraged ETF product is seen as a positive signal for further institutional adoption. With an ETF like XXRP, investors have the additional option of gaining exposure to XRP without having to hold the crypto asset directly.

However, investors are reminded to remain careful. Leveraged products like this do promise the potential for large profits, but also carry the risk of losses that are no less significant, especially in highly volatile market conditions.

Conclusion

The launch of the XXRP ETF by Teucrium on NYSE Arca marks an important milestone for XRP and Ripple Labs. Although this product comes before the approval of an XRP spot ETF, this move shows the market's growing confidence in XRP's long-term prospects in the global crypto market. With an increasingly friendly regulatory climate and growing institutional interest, XRP is likely to continue to be one of the main highlights in the development of the world of digital assets.

FAQs about the 2x Leveraged XRP ETF on NYSE Arca

1. What is a 2x Leveraged XRP ETF?

This ETF is an investment product that provides twice the exposure to XRP's daily performance, designed for short-term traders looking to take advantage of market volatility.

2. Is this the first XRP ETF to launch?

Yes, although approval is still pending for a spot XRP ETF, this leveraged ETF is the first XRP product to be launched on an American exchange.

3. What are the main risks of investing in the XRP 2x Leveraged ETF?

Key risks include XRP's extreme volatility and potential decline in performance, especially if market conditions worsen or if there is a decline in XRP adoption.

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Reference

Decrypt, XRP ETF to Debut as 2x Leveraged Product on NYSE Arca, accessed April 8, 2025.

Author: MF