Breaking Crypto News: First U.S. XRP ETF Launches with $5.4M Volume — Start of a Ripple Revolution?

In a notable display of strength amid challenging market conditions, Teucrium Investment Advisors introduced the first U.S.-based leveraged XRP exchange-traded fund on April 8. This fund generated a significant $5.43 million in trading volume during its opening day. The 2x Long Daily XRP ETF, listed under the ticker XXRP, offers investors double the daily performance of XRP through swaps linked to European XRP products. Despite XRP price fluctuations and a broader market downturn, the fund’s successful launch placed it among the top 5% of all new ETF launches, according to Bloomberg’s senior ETF analyst Eric Balchunas.

Market conditions were not ideal for a prominent ETF launch. Ripple price fell to $1.64 the day before the launch and hovered near $1.73 by Tuesday evening, pointing to bearish sentiment throughout the cryptocurrency market. Nevertheless, Teucrium XXRP performed better than anticipated, surpassing similar leveraged crypto funds and gaining attention for its accessibility and leverage-focused appeal. CEO Sal Gilbertie described it as Teucrium’s “most successful launch day” to date.

Strong Start Despite Market Headwinds

The Teucrium XXRP launch is notable for its timing and performance compared to other exchange-traded funds. Recording over $5 million in trading volume, this leveraged product greatly exceeded the first-day results of Volatility Shares’ 2x Solana ETF, SOLT, launched just weeks before. Balchunas emphasized that XXRP’s turnover was approximately four times higher, signaling robust interest in leveraged exposure to this cryptocurrency.

$XXRP (2x XRP ETF) saw $5mil in volume on Day One, very respectable, esp considering the mkt conditions. That puts it in approx top 5% of new ETF launches, and about 4x what the 2x Solana ETF $SOLT did (altho both 200x less than King IBIT). pic.twitter.com/u3QQq5yuHv

— Eric Balchunas (@EricBalchunas) April 8, 2025

Industry analysts have praised Teucrium for pushing forward amid market uncertainty. Balchunas called the launch “very respectable,” pointing out that few new exchange-traded funds immediately reach the top 5% trading volume. The fund’s ability to perform well amid ongoing crypto liquidations, with over $413 million in losses reported on the same day, demonstrates resilience and investor interest in XRP-related financial instruments.

A Tool for Speculators, Not Long-Term Holders

Teucrium XXRP is designed for short-term trading and is not intended to be a long-term investment. It offers 200% daily exposure to XRP performance via swap agreements and resets every day. As Gilbertie explained, the fund is ideal for traders seeking leverage on their daily positions but may lead to losses if held for several days due to volatility and compounding effects.

Crypto community figure Crypto Eri cautioned investors about the inherent risks of leveraged ETFs. Even in a flat market, high volatility could result in substantial losses. For instance, with 75% volatility, investors could see losses as high as 43%, making risk management crucial for XXRP traders. Despite this, the Ripple ETF offers a unique path for retail investors to access leveraged positions without margin trading.

Future Prospects and Regulatory Obstacles

Following a successful launch, Teucrium is considering further expansion. It has filed for a 2x inverse XRP ETF, designed to enable investors to gain from declines in Ripple price. However, the firm plans to assess market demand before proceeding. This deliberate pause highlights Teucrium’s careful yet forward-thinking strategy in the dynamic crypto ETF landscape.

Market analysis indicates that a more supportive regulatory environment helped boost the success of XXRP. Gilbertie observed that under the current SEC leadership, the launch procedure went much more smoothly compared to the previous administration. With other firms like Grayscale and Franklin Templeton applying for XRP-related offerings, observers foresee increased competition and innovation in this sector.

Looking Ahead: Speculation or Stability?

Although the launch numbers are promising, questions remain about XXRP’s long-term viability. The Ripple ETF is attractive because of its ability to easily deliver leveraged exposure but also introduces high risks. The upcoming weeks will be critical in determining whether the trading volume can be sustained or if it was driven purely by opening-day enthusiasm.

Nonetheless, the Teucrium XXRP launch marks a milestone for XRP’s presence in regulated financial markets. As traditional asset managers and crypto-native firms continue to explore ETFs tied to digital assets, the XRP ETF debut could signal a new chapter for crypto investments. Whether this represents a short-term trading trend or the beginning of broader institutional adoption remains to be seen.