XRP Price Surges 4.46% to $2.24 as Trading Volume Skyrockets 124% to $5.92 Billion

The rally coincides with a significant development in the financial markets. Asset manager Teucrium has launched the first-ever XRP ETF in the United States, offering leveraged exposure to the cryptocurrency.

Rallqying interest in leveraged crypto products has seen a new U.S. ETF tracking the price of XRP come in among the top 5% of new fund launches by trading volume, the Financial Times reported on Monday, citing data analytics firm Kaiko.

The Teucrium REX Token Trust ETF began trading last week, offering 3x leveraged exposure to the cryptocurrency.

The ETF’s strong performance so far could give XRP an early edge in the race toward a spot XRP ETF. A number of firms, including WisdomTree and CoinsTrust, are currently awaiting approval to launch spot Bitcoin ETFs, which would allow investors to invest in the cryptocurrency's price performance directly.

But the launch of a leveraged product appears to have sparked significant interest among institutional investors, who may be looking for alternative investment strategies or to manage risk in the current economic climate.

"The response has been terrific. We're busy doing a lot of outreach to the institutional community, and they've been very responsive," Teucrium CEO Sal Gilbertie told FT.

He added that XRP has "more real-world utility" than Bitcoin, which he described as a "store of value." In contrast, Gilbertie said that XRP is used for cross-border payments and other financial applications, which is increasing its relevance in global finance.

Highlighting the professionalism of the team at Ripple, which is focused on developing technology for the future of finance, he said: "We're not surprised that the response has been strong."

The partnership between Ripple and Hidden Road is expected to further enhance XRP's appeal to institutional investors. Once regulatory approval is granted, Hidden Road will begin using the XRP Ledger for post-trade clearing operations, showcasing its ability to handle large-scale financial transactions efficiently.

This partnership will be instrumental in expanding the use cases for XRP and demonstrating its capabilities to a broader audience.

Moreover, the shift in the regulatory landscape could bode well for the approval of more advanced XRP products, such as an ETF or other instruments that provide more sophisticated investment opportunities.

With Paul Atkins now serving as SEC Chair, replacing Gary Gensler, there is renewed hope for a more favorable stance on digital assets. The conclusion of the Ripple vs SEC lawsuit has further cleared the path, and market watchers are now closely monitoring signs of potential ETF approvals.

Ultimately, the success of the Teucrium REX Token Trust ETF and the partnership with Hidden Road highlight the growing interest in and acceptance of cryptocurrencies among institutional investors.

As the industry continues to innovate and develop new products and partnerships, we can expect to see even more institutions engaging with the digital asset ecosystem.