Teucrium Investment Advisors is launching the first-ever XRP exchange-traded fund (ETF) in the United States.

The Teucrium 2x XRP ETF (XXRP) will provide investors with 2x leveraged exposure to the Ripple token and is scheduled to begin trading on the NYSE Arca on Tuesday. This launch occurs before regulators have approved a standard “spot” XRP ETF.

Key Points:

• Teucrium’s ETF will present a novel option for investors, but there are concerns regarding the volatility of XRP’s price and its usage on the Ripple network.
• Eric Balchunas from Bloomberg Intelligence noted the unusual nature of a leveraged ETF debuting ahead of an unleveraged spot version, which typically precedes such launches.

Teucrium plans to implement a management fee of 1.85% for the ETF. Given the current uncertainties surrounding XRP’s market conditions and adoption rates, the firm warns of potential performance challenges.

The launch of this leveraged ETF aligns with a wave of applications for standard unleveraged XRP ETFs that are still pending approval from the SEC. Major financial institutions, including WisdomTree and Bitwise, have expressed interest in introducing such products.

As the market stands, XRP has increased by 6.5% in the last 24 hours, reflecting a broader bullish movement in the crypto market.