title: Teucrium Investment Advisors Will Debut the First-Ever XRP Exchange-Traded Fund (ETF) in the U.S.

The Teucrium 2x XRP ETF (XXRP) give investors a 2x leveraged exposure to the closely related Ripple token. XXRP will start trading on the NYSE Arca

Crypto derivatives provider Teucrium will launch a 2x leveraged exchange-traded fund (ETF) tracking the closely related Ripple (CRYPTO: XRP) token on Tuesday.

What Happened: Teucrium’s 2x leveraged ETF, named Teucrium 2x Next Generation Netcoins Trust (XXRP), will begin trading at the New York Stock Exchange Arca.

This comes even before a standard “spot” XRP ETF, which directly tracks the token’s price, has been approved by regulators.

“Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, although our odds are pretty high,” Bloomberg Intelligence analyst Eric Balchunas said in an X post.

Typically, ETFs tracking emerging assets like cryptocurrencies begin with unleveraged ‘spot’ funds before more complex leveraged products are introduced.

Teucrium will charge a management fee of 1.85%. The firm pointed out that XRP’s price volatility and declining usage on the Ripple network could pose challenges to the fund’s performance.

“Despite the token’s widespread adoption, concerns remain regarding its market stability and potential for sustained price appreciation,” Teucrium added.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) ruled that its 1940 Act does not permit leveraged ETFs to be listed. However, in July, the regulator granted approval for two leveraged Bitcoin (CRYPTO: BTC) ETFs from ProShares.

Later this week, the SEC is set to decide on several spot XRP ETF proposals submitted earlier this year.

Key Takeaways: Teucrium’s 2x leveraged ETF on Ripple’s XRP token will make its debut on Tuesday. The move comes amid a flurry of applications for spot XRP ETFs still under SEC review.

Major fund managers, including WisdomTree (NYSE:WMT), Bitwise, 21Shares,Canary Capital, and Franklin Templeton, have filed proposals to bring unleveraged XRP ETFs to market.

The SEC has previously acknowledged these applications, and decisions are expected in the coming months.

Earlier this year, the SEC permitted the launch of leveraged Bitcoin ETFs, but it had previously stated that its 1940 Act does not permit leveraged ETFs.

The regulator is set to make a decision on several spot XRP ETF proposals from major asset managers this week.