The New York Stock Exchange (NYSE) has recently approved the listing of a new exchange-traded fund (ETF) tied to XRP, called the Teucrium 2x Long Daily XRP ETF (XXRP). This ETF is set to launch on April 8 and aims to deliver twice the daily performance of XRP using swap contracts. Following the news of the approval, XRP’s price saw a 7% increase, reaching $1.87 at the time of the announcement, according to CryptoSlate data. This rebound comes after a recent dip in the market due to concerns such as global tariffs.
The fund summary for XXRP states that it seeks daily investment results that correspond to two times the daily price performance of XRP for a single day, without holding the asset itself. Instead, it tracks XRP’s daily performance through derivatives, allowing traders to participate in XRP price action without directly owning the token or dealing with crypto exchanges. The ETF comes with an annual expense ratio of 1.85%.
XXRP’s approval is significant as there are currently no spot or futures XRP ETFs available in the US market. Bloomberg ETF analyst Eric Balchunas highlighted the unusual timing of XXRP being the first product tied to XRP, especially as a leveraged ETF. Despite the approval of a leveraged ETF, a spot XRP ETF is still pending approval by the SEC, although there have been multiple filings this year indicating progress in the review process.
Market sentiment suggests that approval of a spot XRP ETF may be on the horizon, especially following Ripple’s settlement of its legal dispute with the SEC. The company agreed to pay a reduced $50 million fine, down from the initial $125 million. This settlement has paved the way for potential acceptance of XRP-based investment vehicles in traditional finance, with the launch of XXRP possibly being the first step towards broader adoption of XRP in the market.
In conclusion, the approval of the Teucrium 2x Long Daily XRP ETF (XXRP) on the New York Stock Exchange is a significant development in the world of cryptocurrency investment. With the ETF aiming to deliver twice the daily performance of XRP using swap contracts, traders now have a new way to participate in XRP price action without directly owning the token. The timing of XXRP’s approval as the first product tied to XRP, despite no spot XRP ETF being available in the US market, indicates a potential shift towards broader acceptance of XRP-based investment vehicles in traditional finance. Additionally, with market observers suggesting that approval of a spot XRP ETF may be imminent following Ripple’s legal settlement with the SEC, the launch of XXRP could be a stepping stone towards increased adoption of XRP in the investment landscape.
