First Leveraged XRP ETF Launches on NYSE Arca, Beating Spot Offerings
On April 8, the US financial market will officially welcome the first leveraged XRP ETF, XXRP, issued by Teucrium Investment Advisors and listed on NYSE Arca. This event marks a bold step in the context of XRP spot ETFs still awaiting approval from the US Securities and Exchange Commission (SEC).
Teucrium describes the XXRP fund as a 2x leveraged product, designed to double the daily performance of the XRP token, specifically for short-term traders. The management fee for the fund is 1.85%, along with clear warnings about the risks of volatility and reduced liquidity that can affect investment performance.
Unexpected Move Amid Regulatory Landscape
Bloomberg senior ETF analyst Eric Balchunas said it was “very unusual — maybe a first” for a leveraged ETF to launch before a spot ETF. He noted that while a spot XRP ETF has not yet been approved, the likelihood of approval is still considered quite high.
Last month, Ripple Labs, the company that issues the XRP token, agreed to pay a $50 million fine to end a years-long lawsuit with the SEC over its sales of XRP to institutional investors. The move improves Ripple’s relationship with regulators and creates a more solid legal foundation for financial products related to XRP.
Is a Spot ETF Wave Coming?
A number of major players, including WisdomTree, Bitwise, 21Shares, Franklin Templeton, and Canary Capital, have filed applications to launch a spot XRP ETF. All are awaiting a decision from the SEC, in the context that the agency has shown more openness to the digital asset sector since the beginning of 2025, especially after Donald Trump took office and pledged to promote crypto-friendly policies.
In addition to XRP, the SEC is also considering many spot ETF proposals for other altcoins such as Solana, Litecoin, Dogecoin, opening up great expectations for institutional investors.
Grayscale also joins the game
Not staying out of the game, Grayscale Investments - a unit managing billions of dollars in digital assets - has filed to convert its Digital Large Cap Fund into a public ETF. The fund currently holds many large assets including Bitcoin (79.4%), Ethereum (10.69%), XRP, Solana and Cardano.
The move from Grayscale along with Teucrium shows that the race to list altcoin ETFs has officially begun.
Where is XRP?
As of press time, XRP is trading around $1.87, down slightly by 3% in 24 hours. However, with the ETF wave rising and regulatory pressure gradually cooling, analysts expect XRP to soon take advantage of the opportunity to rebound in Q2 and Q3 of 2025.
XXRP ETF could be the beginning of a new chapter in the journey of financialization of digital assets – where altcoins like XRP gradually take center stage, competing with Bitcoin in the eyes of institutional investors.