Teucrium CEO Sal Gilbertie Explains the Rationale Behind Launching a 2X Leveraged XRP ETF

Teucrium CEO Sal Gilbertie recently shared insight into the company's decision to launch a 2X Leveraged XRP ETF, citing a strong belief in XRP's utility and real-world use case.

In a recent interview with Bloomberg, Sal Gilbertie, CEO of Teucrium Investment Management, discussed the company’s decision to launch a 2X leveraged XRP ETF, highlighting the token’s utility and real-world use case.

Known for rolling out the first U.S. futures ETF earlier this year, Teucrium has again made headlines with its 2X leveraged XRP ETF.

Having already obtained approval from the Securities and Exchange Commission (SEC) for a bitcoin futures ETF in 2021, Teucrium is now focusing on blockchain assets.

Outlining XRP’s unique properties, Gilbertie said that the token stands out among cryptocurrencies. In his view, XRP is special not only as a tradable asset but also as a token with a defined role and the support of a serious development team.

“We chose XRP because we believe it’s the coin with the most utility. It’s not just speculation; it facilitates real transactions. Ripple is a team of true professionals,” Gilbertie stated.

He further explained that XRP is a practical tool for transferring value, in contrast to other tokens which have been criticized for their purely speculative nature.

“Bitcoin is a store of value, and that’s valid. But XRP has a real use case.”

When asked about the demand for the product, Gilbertie highlighted the interest from investors, considering there are over six million XRP wallets. He added that the firm is offering a new way for investors to engage with XRP.

While acknowledging the risks associated with leveraged products, Gilbertie emphasized that the ETF is designed for sophisticated retail and professional traders who are aware of the heightened risk profile.

Beyond trading, Gilbertie believes that XRP and Ripple are setting the stage for broader financial transformation. He hinted at Ripple’s plans to “tokenize everything.”

Moreover, he mentioned Ripple’s recent acquisition of Hidden Road, a broker-dealer and clearing member, as a significant step toward integrating traditional finance with decentralized finance (DeFi).

In Gilbertie’s vision, the future will see traditional financial infrastructure converge with decentralized systems, rendering the present system more efficient. However, he cautions that this transition will take time.

Meanwhile, the host of the interview noted how surprising it is that Teucrium secured approval for the XRP ETF, especially considering that such a product would have been nearly impossible to launch just a year ago.

According to Gilbertie, this shift is due to new leadership at the SEC. He stated that the old SEC leadership was an obstacle to crypto innovation, but the current leadership appears more open-minded.

“The old SEC leadership was a blocker to crypto innovation. But the current SEC appears more open-minded,” he said.

According to Gilbertie, Teucrium applied for approval during a transitional period at the SEC, which made a difference in their interactions with the staff.

“We applied for the product last year during a transitional period at the SEC, and we had a great time working with the staff. It’s really the leadership that makes the difference,” he added.

After successfully launching the leveraged XRP ETF, which notably achieved a first-day turnover of over $5.3 million despite the bearish market conditions, Teucrium is already looking ahead.

Now, the CEO revealed that the company has filed for an inverse product and is interested to see if there will be any interest from investors in such a product.

“We don’t launch funds unless we truly believe in the asset. We believe in XRP. Its use case is proven—it just needs to expand,” Gilbertie concluded.