First 2x Leveraged XRP ETF Debuts in the United States

The first 2x leveraged XRP exchange-traded fund (ETF) debuts in the United States. Launched by Teucrium Investment Advisors, the Teucrium 2x Long Daily XRP ETF (ticker: XXRP) began trading on the NYSE Arca exchange. This ETF aims to deliver twice the daily performance of XRP, the cryptocurrency associated with Ripple, using financial instruments like swaps and futures rather than directly holding the token. It comes with a management fee of 1.85% and is designed for investors seeking amplified short-term exposure to XRP’s price movements.

This launch is notable as it’s the first XRP-based ETF in the U.S., and unusually, it’s a leveraged product rather than a spot ETF, which tracks the asset’s price directly. Spot XRP ETF applications from firms like Bitwise, WisdomTree, and Franklin Templeton are still under SEC review. The debut follows a shifting regulatory landscape, including the SEC dropping its case against Ripple in March 2025, potentially paving the way for more crypto investment vehicles. XRP’s price today hovers around $1.87-$1.93, reflecting a mix of volatility and investor interest amid this development.

This ETF provides a regulated, traditional investment vehicle for gaining amplified exposure to XRP without needing to directly buy or store cryptocurrency. It’s likely to attract institutional and retail investors who prefer the familiarity of stock exchanges over crypto platforms. The 2x leverage means it doubles both gains and losses based on XRP’s daily performance. In a volatile asset like XRP—currently trading around $1.87-$1.93—this could lead to significant profits or losses, especially for short-term traders. However, leverage decay over time makes it less suitable for long-term holding.

With a 1.85% management fee, it’s pricier than many equity ETFs (typically 0.1%-0.5%) and even some crypto spot ETFs in other markets. This could eat into returns, particularly if XRP’s price stagnates. The ETF’s reliance on swaps and futures could increase demand for XRP derivatives, potentially boosting liquidity and price if investor interest surges. Conversely, heavy selling or shorting via leveraged products could amplify downward pressure during dips.

As XRP is tied to Ripple’s payment solutions, a successful ETF might signal broader acceptance of XRP’s utility, possibly encouraging adoption by financial institutions—though the ETF itself doesn’t directly fund Ripple. A leveraged XRP ETF could pave the way for similar products tied to other cryptocurrencies, further blending traditional finance (TradFi) with decentralized finance (DeFi). It might also pressure competitors like Ethereum or Solana to see leveraged ETF offerings. The ETF’s approval suggests a thawing in U.S. regulatory attitudes toward crypto products, especially after the SEC dropped its Ripple lawsuit in March 2025.

However, the focus on leveraged rather than spot ETFs indicates the SEC might still be cautious about direct crypto exposure in regulated markets. This could accelerate approvals for pending spot XRP ETFs (e.g., from Bitwise or Franklin Templeton) or even leveraged ETFs for other assets, depending on how XXRP performs and whether it avoids major scandals or losses. The high-risk nature of a 2x leveraged product might reignite discussions about retail investor safeguards. Critics could argue it’s too speculative for mainstream markets, while proponents might see it as a step toward treating crypto like any other asset class.

By listing on NYSE Arca, XRP gains a stamp of legitimacy in traditional finance, potentially shifting perceptions from a niche crypto to a serious investment option. Leveraged ETFs tend to exaggerate market moves. In a crypto market already known for wild swings, this could mean sharper XRP price spikes or crashes, influencing sentiment across the broader digital asset space. If successful, this U.S.-based product might inspire similar offerings in crypto-friendly jurisdictions like Canada or Europe, where spot crypto ETFs already exist, further globalizing XRP’s reach.