Today, Vermont-based Teucrium launches the first XRP-based ETF in the US. The new financial instrument promises to double the daily returns of XRP.
Features of the New ETF
The Teucrium 2x Long Daily XRP ETF (XXRP) will be listed on NYSE Arca. This ETF offers investors double the daily performance of XRP, implying increased risks and potential rewards due to the cryptocurrency's volatility.
Context of ETF Launch
In recent months, interest in XRP ETFs has grown due to multiple applications from large companies like WisdomTree and Franklin Templeton. However, no XRP-based ETF has yet been approved by the SEC. The launch of Teucrium is seen as unusual since such products typically emerge after the approval of spot ETFs.
Analysis of XRP Price Movement
At the time of the ETF launch, XRP's price stands at $1.87, which is up 7% in the past 24 hours. However, XRP has fallen by 11.2% over the past week and by 23% in two weeks. Annually, the token is up 215% due to favorable legal outcomes and ETF expectations.
The launch of the first XRP-based ETF by Teucrium marks new horizons for investors, yet risks remain concerning the cryptocurrency's volatility and the absence of approved spot ETFs.
