First XRP ETF Launches in the U.S. This Tuesday

Wall Street opens its doors to XRP. Teucrium Investment Advisors is set to launch the very first ETF backed by Ripple’s native asset on American soil. A leveraged product, with no direct holding, that reflects the growing desire of traditional financial markets to capture the volatility (and potential profits) of the crypto ecosystem. While the industry is still awaiting the green light for a spot XRP ETF, this launch sounds like a strategic accelerator.

The first XRP ETF listed in the United States

The Teucrium 2x Long Daily XRP ETF (XXRP) will make its debut this Tuesday and will become the first U.S. ETF linked to the performance of XRP. Indeed, this product developed by Teucrium Investment Advisors, an asset management firm based in Vermont, will offer double exposure to the daily performance of XRP.

“This is not a spot ETF,” clarified the issuing company. It emphasizes that the fund will use derivative financial instruments to replicate and amplify the daily price variations of the XRP token.

The stated objective is to capture the interest of traders looking to maximize their potential gains on short movements and to respond to a growing demand for more sophisticated financial products related to cryptos.

This new product has several specific characteristics that distinguish it from a traditional ETF:

• The type of fund: 2x leveraged ETF based on XRP;
• The nature of exposure: derivative exposure via futures contracts, without direct holding of XRP;
• Its objective: to replicate and amplify the daily movements of XRP’s price;
• The target audience: experienced traders looking for quick gains on daily price movements;
• The risks: amplified losses in the event of a trend reversal, increased volatility, not suited for long-term strategies.

With this launch, Teucrium positions itself as an innovative player in a changing market, anticipating a future normalization of crypto products within the U.S. regulatory environment.

Towards a more open regulation on spot ETFs?

Alongside this first, the SEC has officially recognized a request filed by Canary Capital for a spot XRP ETF. This recognition does not equate to approval, but it initiates a 21-day public consultation process, at the end of which the agency must render its decision.

Such a development has been noted as a sign of potential openness from the American regulatory authority, which until now has systematically postponed requests related to spot crypto ETFs, including for Bitcoin.

The initiative from Canary Capital aims to propose a product quite different from XXRP: a spot ETF that will actually hold XRP.

Such a product could represent a major advancement for institutional and individual investors seeking direct, transparent, and less volatile exposure to cryptos. If the SEC were to approve this request, it would mark a significant break from the current policy of reluctance towards spot crypto products.

The parallel evolution of these two dynamics, a derivative product already validated and a spot ETF under review, provides insight into the ongoing tensions and adjustments between the market and regulators. While leveraged ETFs bring technical sophistication to the market, they do not offer the stability or simplicity of a spot product. In the coming months, the handling of Canary Capital’s request could constitute a decisive test of the real willingness of American authorities to accompany the integration of cryptos into the regulated infrastructures of traditional finance.