Billions to Flow Into Ripples XRP as First Ever XRP ETF Hits U.S. Market

In a landmark development for the crypto sector, the first-ever exchange-traded fund (ETF) linked to XRP debuted on U.S. exchanges on Tuesday, potentially catalyzing significant price movement for the digital asset.

As per a Monday report by Bloomberg, Teucrium Investment Advisors LLC is breaking new ground with the launch of the Teucrium 2x Long Daily XRP ETF, trading under the ticker XXRP. This innovative financial product will offer investors twice the daily return of XRP through swap mechanisms, marking a significant milestone for the cryptocurrency that ranks fourth globally with a market capitalization of approximately $111 billion.

Industry experts have noted the unusual nature of this launch. Eric Balchunas, senior ETF strategist at Bloomberg, commented on the unusual sequencing noting, Very odd (maybe a first) that a new assets first ETF is leveraged. Spot XRP still not approved, although our odds are pretty high.

Notably, the ETF carries a 1.85% expense ratio and represents a dramatic shift in XRPs regulatory standing. This development follows years of legal challenges, most notably a protracted battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) that recently concluded.

Market analysts suggest this ETF could drive substantial capital inflow into XRP, as it provides traditional investors with regulated exposure to the cryptocurrency without the complexity of direct digital asset management. The leveraged structure may attract sophisticated traders looking to amplify returns in what has historically been a volatile asset class.

That said, the Teucrium offering emerges ahead of nine other companies that had filed for XRP ETF products by March 2025, including major financial players like Bitwise, ProShares, WisdomTree, Grayscale, and Franklin Templeton.

A pro-ripple attorney, John Deaton, celebrated the milestone, reflecting on the dramatic turnaround from four years ago when he first intervened in the Ripple case.

What a difference four years makes. Around this time, 4 years ago, I was filing a Motion to Intervene into the Ripple case, asking Judge Torres to allow a putative class of XRP holders to become actual defendants in the case. Deaton stated.

On two separate occasions, within her written ruling, Judge Torres cites to the efforts we made (the Affidavits and at footnote 16). And today, this is like the 20th XRP related ETF. Never say you cant make a difference. He added.

The ETF launch also coincides with Ripples report on Monday, projecting a massive shift from $0.6 trillion to $18.9 trillion in tokenized assets by 2033. The company outlined a three-phase evolution starting with the low-risk adoption of tokenized instruments, followed by institutional expansion into complex assets, and ultimately market transformation as tokenization embeds itself in both financial and non-financial products.

Following the news, XRP has experienced a notable 4.85% surge in the past 24 hours, trading at $2.04 at press time. This positive trend is expected to continue, with investors closely monitoring the market as trading for XXRP kicks off.

Text source: ZyCrypto

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