Explaining Investor Interest in XRP and the Teucrium 2x Long Daily XRP ETF
Investor enthusiasm for XRP has surged, largely credited to the devoted "XRP Army," as highlighted by Sal Gilbertie, the President and CEO of Teucrium Trading, during his recent interview on CNBC’s "ETF Edge." The firm’s latest product, the Teucrium 2x Long Daily XRP ETF (XXRP), has gained noteworthy traction, marking it as the most successful launch in Teucrium’s history within a mere 16 weeks, attracting inflows of "hundreds of millions." Gilbertie’s portrayal of this response as "extraordinary" reflects a burgeoning interest in digital assets that parallels historical tech adoption trends, particularly during the internet boom of the 1990s.
While Gilbertie expresses his admiration for XRP specifically, he suggests that investors might find greater long-term value in supporting companies leveraging blockchain technologies rather than speculating on individual cryptocurrencies. He cautioned against only focusing on potential winning tokens, advocating for a broader view that considers the infrastructure enabling cryptocurrency adoption. This perspective aligns with the overarching view that blockchain technology, much like the internet in its formative years, serves as an essential foundation for future economic development and innovation.
The launch of the Teucrium 2x Long Daily XRP ETF (XXRP) on April 8, 2025, lists it on NYSE Arca, differentiating it from traditional funds by delivering twice the daily movement of XRP without holding the token directly. The fund utilizes total return swaps with established financial institutions and may also engage cash-settled XRP futures to fulfill its dual-return objective. It is crucial to note that this strategy is daily-focused and not designed for extended holding periods, making it particularly sensitive to daily market fluctuations.
Investors should be well aware of the risks associated with the ETF, as disclosed in the fund’s literature. Factors such as leverage, tracking errors, and volatility can result in significant discrepancies in multi-day returns versus XRP’s performance. In essence, the fund could experience substantial losses even in scenarios where XRP remains stable or increases in value over extended periods. Additionally, investors face challenges related to liquidity, counterparty risk on swaps, and the intrinsic trading complexities typical of ETFs, including premiums, discounts, and bid-ask spreads.
Market performance data reflects the volatility inherent in cryptocurrencies and related investment vehicles. On October 26, 2025, XRP traded at approximately $2.64, having risen by 2.2% within 24 hours and standing at a robust 26% increase year-to-date. Meanwhile, the XXRP ETF closed at $22.90 on the preceding Friday, showing a 7.06% increase for the day but recording a decrease of 15.03% year-to-date. Such figures exemplify the ETF’s fluctuating nature and hint at the broader dynamics affecting cryptocurrency investments.
The prevailing question remains whether the crypto ecosystem is on the verge of an ETF explosion. Gilbertie asserts that there is “no question” about this development, suggesting a solidified future for cryptocurrency-based ETFs as institutional interest grows and regulatory frameworks evolve. As investor demand intensifies, it will be vital for stakeholders and potential investors to remain informed and cautious, understanding the unique risks and opportunities that a rapidly evolving market presents. With the backdrop of widespread blockchain adoption appearing increasingly likely, the convergence of traditional finance and digital assets signals a transformative period for investors willing to engage thoughtfully in this sector.
