XRP ETF to Debut as 2x Leveraged Product on NYSE Arca

According to the company Teucium Investment Advisors, established asset manager Teucrium Investment Advisors based in the US, a 2x leverage is launching on 8 April. website.

The XXRP ETF, based on the native token of stewards, Ripple Labs, is mentioned on NYSE Arca.

Bloomberg Senior ETF analyst Eric Balchunas noted The unusual nature of the launch via X on Monday.

“Very strange (perhaps a scoop) that the first ETF of a new assets is used. Spot XRP has still not been approved, although our chances are quite high,” he wrote.

The fund is designed to offer Ripple’s XRP token twice the daily performance and is intended for short-term trade. Teucium charges a management allowance of 1.85%.

In his fund literature, Teucrium mentioned the volatility and falling use as risks that can negatively influence the performance of the ETF.

The debut comes in the midst of a wave of spot XRP ETF applications that are still being assessed by the US Securities and Exchange Commission (SEC).

Fund managers, including Wisdomtree, Bitwise, 21Shares, Canary Capital and Franklin Templeton, have all submitted proposals.

The SEC has recognized several spot XRP ETF applications. In anticipation of decisions, additional XRP investment vehicles can market in the coming months.

In January 2024, the SEC approved the first party Bitcoin -ETFs, which led to an increased interest in ETF’s bound to Other cryptocurrencies Such as Solana, Litecoin, Dogecoin and XRP.

The inauguration of Donald Trump in January also saw an increase in requests from investment companies that compete to bring spot ETFs based on altcoins on the market after the pivot point of the SEC to a favorable crypto regulation this year.

Teudium’s ETF launch follows the decision of the SEC in March to drop a long-standing case against XRP-Tokmakers Ripple, one in a whole series of cases against crypto companies that have since been thrown away. It paid a fine of $ 50 million.

XRP is currently trading at $ 1.87, a decrease of 3% during the last 24 hours.

Published by Sebastian Sinclair