- Teucrium’s ‘2x Long Daily XRP’ ETF (XXRP) has successfully launched with an impressive US$5 million in trading volume.
- This places the launch within the top 5% of new ETF launches.
- XXRP can deliver double the daily returns of XRP through the use of swap agreements.
- Teucrium hints at plans of an inverse XXRP, thereby allowing users to potentially profit in a similar manner from the downward movement of the price of XRP.
The first US leveraged XRP ETF (XXRP), launched by Teucrium, has accumulated US$5 million (AUS$8.16 million ) in trading volume on its first day. This figure confirms that XXRP has secured a place within the top 5% of new ETF launches.
Sal Gilbertie, CEO of Teucrium mentioned the launch has had a ‘terrific response’ with ‘overwhelming excitement’.
I like crypto… I happen to really be an XRP fan, I think that it has a good use-case, I think it’s very legitimate, I think that they’re smart people and I like the asset… When we realised there’s going to be a more friendly atmosphere towards crypto by the SEC we got to work (and) filed as soon as the old SEC was out of power.
Sal Gilbert, CEO of Teucrium. How Does it Work?
XXRP can deliver twice the amount of profit as the price movement of XRP through a swaps mechanism. The ticker ‘XXRP’ is also a subtle nod to this feature.
Gilbertie mentioned that their XRP ETF can hold any instrument that has price exposure to XRP. He then detailed how the swap mechanics involve European XRP ETPs. It’s worth noting there is a 1.85% expense ratio for XXRP.
What Comes Next?
Teucrium have mentioned plans to launch an inverse product for their XRP ETF which would enable investors to capitalise upon price movement to the downside.
Related: Ripple Buys Broker Hidden Road for $1.25 Billion, CTO Schwartz Calls it ‘Defining Moment’ for XRPL
Further Context
Sal Gilbertie mentioned Teucrium filed for XXRP as soon as the SEC came under a new line of direction with the change in the US administration.
Teucrium is an ETF company that has traditionally focused on agriculture commodity ETFs but has now forged a path into the crypto markets.
With the inverse XXRP having already been filed for, Teucrium is quite possibly also one step closer to being able to offer an XRP spot ETF alongside a number of other asset managers.
XRP has been one of the more successful cryptocurrencies and has seen a resurgence in popularity after several legal wins in court following the SEC’s previous regulation-by-enforcement approach.
XRPs use-cases (are) primarily the movement of money and assets around pretty quickly.
Sal Gilbert, CEO of Teucrium Related: Reports: US Justice Department Dials Back Crypto ‘Enforcement Approach’
The post New 2x Long Daily XRP ETF Hits Top 5% in Trading Volume With $5 Million appeared first on Crypto News Australia.
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