- Teucrium’s 2x Long Daily XRP ETF (XXRP) saw strong demand, highlighting interest in leveraged crypto products despite market uncertainty.
- XXRP’s debut, marking Teucrium’s most successful launch, signals growing interest in tactical crypto trading tools for active investors.
- Teucrium’s aggressive strategy and filing for an inverse XRP ETF show confidence in favorable crypto market conditions amid regulatory challenges.
The newly launched 2x Long Daily XRP ETF (XXRP) from Teucrium recorded a solid $5 million in trading volume on its first day. Eric Balchunas, Bloomberg’s ETF analyst, highlighted the debut as one of the strongest in the current market. He noted that XXRP landed in the top 5% of ETF launches and outperformed the 2x Solana ETF (SOLT) by four times. This early performance signals strong interest in leveraged XRP products despite broader market uncertainty.
Teucrium’s Most Successful Launch Yet
Teucrium, known for its commodity-focused funds, has taken a step into crypto. According to CEO Sal Gilbertie, XXRP marks its most successful ETF debut ever. The firm launched the product immediately after the SEC’s leadership transition, utilizing the 75-day approval window effectively. Consequently, the company tapped into pent-up demand for XRP-based trading tools.
Moreover, XXRP offers daily 2x leveraged exposure to XRP using swap agreements. These swaps reference European XRP exchange-traded products due to the lack of U.S.-listed spot ETFs. Besides swaps, the ETF can include other XRP-linked instruments when available, ensuring efficiency.
Gilbertie emphasized that XXRP is not for long-term holders. It is a tactical, short-term trading tool meant for active traders. He warned that flat or slow-moving prices could erode returns quickly. Hence, users must understand the math behind daily resets before diving in.
Leveraged Tools Gain Popularity in Crypto
The ease of access through platforms like Robinhood further fuels interest. According to Gilbertie, many retail traders now use these ETFs to gain leverage without complex setups. Additionally, Teucrium has already filed for an inverse 2x Short XRP ETF, awaiting market feedback before launch.
Meanwhile, Ripple’s recent $1.25 billion acquisition of Hidden Road marked a major industry move. This deal positioned Ripple as the first crypto firm to own a global prime broker. However, XRP’s price still struggles, burdened by ongoing SEC litigation.
Recent legal developments have added confusion. Experts remain divided on the potential outcomes. Yet, Teucrium’s aggressive strategy indicates a more favorable regulatory climate. The ETF firm also plans broader crypto exposure, depending on investor demand.
