According to the company’s website, U.S.-based asset manager Teucrium’s financial experts will launch a Double-Powered leveraged XRP exchange-traded fund (ETF) on April 8. The XXRP ETF, built on the native token of stewards, Ripple Labs, will be introduced on NYSE Arca.
Eric Balchunas, an expert in Bloomberg Senior ETF, mentioned the unexpected aspect of the launch by X on Monday.
He said that it is really strange (maybe the first time) that the first ETF for a new asset is a boosted one. The regular spot XRP ETF remains unapproved, yet, even though we think there is a high chance it will be.
The fund is created to give twice the daily performance of Ripple’s XRP token and is planned for short-term trading. Teucrium will tax a service fee of 1.85%. In its fund documents, Teucrium said that big price changes and some people using it could negatively impact how well the ETF does.
The launch comes during a rise in spot activity. XRP ETF applications remain in progress by the U.S. Securities and Exchange Commission (SEC). Investment companies like WisdomTree, Bitwise, 21 Shares, Canary Capital, and Franklin Templeton have all sent in their plans.
The SEC has accepted several spot-based XRP ETF applications. In the next few months, the unresolved decisions will provide extra XRP investment vehicles to the market.
In January 2024, the SEC confirmed the first batch of spot Bitcoin ETFs, which caused more people to become interested in ETFs linked to other cryptocurrencies like XRP, Litecoin, Dogecoin, and Solana.
When Donald Trump became president in January, many investment companies suddenly applied to start spot ETFs based on other cryptocurrencies. This occurred after the SEC changed its policies to support crypto more this year.
Teucrium’s ETF started coming after the SEC decided in March to end a case it had been investigating for a long time against Ripple, the company behind the XRP token. This was one of several cases against crypto companies that have been dropped. Ripple paid a $50 million fine. XRP is presently trading at $1.87, having dropped 3% in the past 24 hours.
Read also:- XRP Futures Traders Still Bullish Despite 20% Price Drop, Expert Calls Decline a ‘Small Speed Bump’
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