The first U.S.-listed exchange-traded fund tracking XRP has begun trading on the NYSE Arca, but it is not a spot product. Instead, the Teucrium 2x Long Daily XRP ETF (ticker: XXRP) provides leveraged exposure to XRP price movements through futures contracts, offering double the daily return of the underlying asset. The fund launched on April 8, 2025, marking a milestone for XRP in the traditional finance space, albeit with a structure that differs from the spot Bitcoin and Ethereum ETFs that previously debuted.
Product Details: High Leverage, High Fees, Short-Term Focus
According to the fund's official summary, XXRP is designed for investors with a short-term, high-conviction view on XRP. It aims to achieve daily investment results, before fees and expenses, that correspond to two times (2x) the daily price performance of XRP for a single day, not for any other period. The actively managed fund falls under the macro strategy category within cryptocurrency-themed alternative assets and carries an expense ratio of 1.89%. The summary explicitly states: “If you have a short-term high-conviction view on XRP prices, you may consider exploring the Teucrium 2x Long Daily XRP ETF.” This language underscores the product's suitability for traders rather than long-term holders.
Analyst Reaction: Unusual but Expected
Bloomberg ETF analyst James Seyffart broke the news on April 7 via social media platform X, identifying XXRP as a “2x long XRP futures” product. He clarified that the ETF is not approved by the SEC in the traditional sense; rather, the regulator allowed its listing under existing rules for commodity futures-based products. “This isn’t a spot product, its futures only. Spot products not yet approved,” Seyffart wrote.
Fellow analyst Eric Balchunas expressed surprise that the first XRP ETF is a leveraged one, calling it “very odd (maybe a first) that a new asset’s first ETF is leveraged.” He added, “Spot XRP still not approved, although our odds are pretty high.” The comment reflects the broader uncertainty around spot XRP ETF approval, which remains pending before the SEC despite growing institutional interest.
Regulatory Backdrop: From Lawsuit to ETF
The launch comes after Ripple Labs resolved its long-running legal battle with the SEC with a $50 million settlement. Since then, institutional interest in XRP has surged. Ripple CEO Brad Garlinghouse has repeatedly stated that approval of a spot XRP ETF is “inevitable,” citing the precedent set by Bitcoin ETFs. Although XXRP is not a spot product, its arrival is seen as a stepping stone. However, analysts note that until the SEC approves a spot XRP ETF, investors seeking direct exposure to XRP must rely on futures-based products like XXRP or other means. The fund's active management and high expense ratio reflect the complexity and risk of providing leveraged exposure to a volatile cryptocurrency. As the first XRP ETF on a major U.S. exchange, XXRP may pave the way for more diverse XRP investment vehicles in the future, but it also highlights the still-fragmented regulatory landscape for digital assets in the U.S.