The XRP ETF, launched under the ticker XXRP on April 8, 2025, on the NYSE Arca exchange, marks a significant milestone for the cryptocurrency market, particularly for XRP, the native token of the XRP Ledger. This ETF offers 2x leveraged exposure to XRP’s daily price movements through swap agreements, designed for short-term speculation on volatility. The launch comes after a prolonged legal battle between the SEC and Ripple Labs, which was resolved in early 2025, aligning with a shift toward a more pro-crypto regulatory posture under President Trump’s administration.
Recent articles, such as one from U.Today dated April 11, 2025, and another from CoinDesk dated April 9, 2025, provide detailed insights into Gilbertie’s comments and the ETF’s debut performance. Additional sources, including CryptoSlate and ETF.com, offer context on market reactions and the ETF’s structure, forming the basis for this analysis.
Teucrium CEO’s Statements: ‘Terrific’ and ‘Overwhelming’
Sal Gilbertie, CEO of Teucrium Investment Advisors, described the XRP ETF debut as “terrific” and noted it was “overwhelming” in terms of first-day activity during an interview with ETF analyst Neta Geraci, as reported in U.Today. He stated that the launch was Teucrium’s most successful ETF debut to date, highlighting the strong market response. This sentiment was echoed in CoinDesk, where Gilbertie called it the firm’s most successful launch ever, emphasizing its significance.
In another interview on the Crypto Prime podcast, as per CryptoSlate, Gilbertie reiterated that the debut was Teucrium’s most successful in terms of first-day activity, reinforcing the “terrific” assessment. He also noted that the filing for the ETF was largely overlooked, which made the strong debut even more surprising.
ETF Performance and Debut Details
The Teucrium 2x Long Daily XRP ETF (XXRP) debuted with approximately $5 million in trading volume on April 8, 2025, as reported in both U.Today and CoinDesk. This volume, while a small fraction compared to the iShares Bitcoin Trust ETF (IBIT), which recorded massive volumes last year, was described as “very respectable” by Eric Balchunas, a prominent ETF analyst, in the U.Today article. This indicates that, given current market conditions, the debut was strong for a new leveraged ETF.
The ETF’s structure, as detailed in ETF.com, offers 2x daily exposure to XRP’s price movements through swap contracts, with no suitable U.S.-listed spot XRP ETFs available, referencing European exchange-traded products for pricing. It carries a management fee of 1.85% and had accumulated $2 million in net assets before its debut, as noted in CryptoTvplus. This leveraged design targets aggressive traders bullish on XRP but without access to traditional margin accounts, as per CryptoSlate.
Context of the Launch
The launch’s timing is significant, occurring shortly after the resolution of the SEC’s legal battle with Ripple Labs, which had previously classified XRP as a security in 2020, creating regulatory uncertainty. The CoinDesk article mentions that the filing for the ETF took place right after the prior SEC administration exited, and Teucrium seized the earliest launch window, aligning with a more constructive regulatory posture under the new administration. This shift, as noted by Gilbertie in CryptoTvplus, was crucial, with investor interest strong due to XRP’s appeal and the ETF’s leverage.
The ETF’s debut precedes the approval of a standard spot XRP ETF, which is unusual for new asset classes, as mentioned in Cointelegraph. This leveraged approach, while innovative, carries risks due to XRP’s price volatility and declining usage on the Ripple network, as warned by Teucrium in BlockchainMagazine.
Market Implications and Investor Interest
The “terrific” and “overwhelming” response, as per Gilbertie, suggests strong demand from both retail and institutional investors looking for regulated, easy-to-access vehicles for XRP exposure. The $5 million trading volume, while modest compared to Bitcoin ETFs, indicates initial market acceptance, especially given the ETF’s niche as a leveraged product. CryptoTvplus notes that Gilbertie emphasized launching during a market slump, aligning with a classic investment strategy to seize gains as the market rebounds, potentially driven by global economic uncertainty.
However, the leveraged nature of the ETF, offering 2x exposure, introduces risks, as daily compounding can amplify losses in volatile markets. This aligns with Teucrium’s warning in BlockchainMagazine about XRP’s volatility, suggesting that while the debut was successful, it targets aggressive traders, not long-term holders.
Controversy and Analyst Perspectives
There is some controversy around leveraged ETFs like XXRP, reflecting differing views on their risks and benefits:
- Supporters: Advocates, as seen in Gilbertie’s comments and Balchunas’s “very respectable” assessment, see the debut as a sign of growing crypto ETF acceptance, especially post-regulatory clarity. The timing, post-SEC shift, is seen as a catalyst, per Cointelegraph.
- Critics: Opponents, implied in discussions on volatility, raise concerns about leveraged ETFs’ suitability for retail investors, given potential losses from daily rebalancing, as noted in ETF.com’s risk disclosures. The declining usage of XRP on Ripple’s network, per BlockchainMagazine, adds skepticism about long-term value.
This debate underscores the complexity of crypto ETFs, with the evidence leaning toward a successful debut but highlighting risks for investors.
