First XRP ETF in the U.S. Achieves $5M in Initial Trading, Marking a Major Milestone
The debut of Teucrium's leveraged XRP ETF generated significant trading volume, positioning it among the most successful launches of new ETFs.
Key Insights:
- Teucrium’s 2x Long Daily XRP ETF recorded $5 million in trading volume on its debut, placing it in the top 5% of new ETF launches.
- The ETF strives to deliver twice the daily returns of XRP through swap agreements, referencing European exchange-traded products for rates.
- Teucrium also intends to release an inverse XRP ETF to help investors profit from price declines, pending an analysis of demand.
Teucrium’s 2x Long Daily XRP exchange-traded fund (XXRP), marking the first leveraged XRP product in the U.S., achieved $5 million in trading volume on its launch, classifying it as one of the company’s most esteemed introductions while ranking in the top 5% among new ETFs.
This ETF is structured to provide double daily returns of XRP through swap agreements. Given the absence of suitable U.S.-listed spot XRP ETFs, the reference rates for these swaps include a range of European exchange-traded products.
Market Context
The recent shift in the U.S. government towards a more pro-crypto stance paved the way for this ETF’s market entry. The filing occurred shortly after a change in the Securities and Exchange Commission (SEC) leadership, and Teucrium moved swiftly to utilize the initial launch window after the typical 75-day review period.
CEO Sal Gilbertie stated: “We filed as soon as we could after the old SEC regime left … we launched today. I think it’s almost at a couple hundred thousand shares.”
The fund exhibited approximately four times the initial activity of Volatility Shares’ 2x Solana ETF (SOLT), leading it to solidify its position in the top 5%, as reported by Bloomberg ETF analyst Eric Balchunas.
Gilbertie emphasized the product’s nature: “This is absolutely a short-term trading tool — ideally for one day,” he cautioned, highlighting the inherent risks involved.
Looking ahead, Teucrium, which currently manages around $320 million across 12 ETFs, is already preparing for the introduction of the Teucrium 2x Short Daily XRP ETF, according to a prospectus. This issuance aims to allow investors to benefit from falling XRP prices but will require a demand evaluation before its launch.
