New XRP ETF reaches $67m AUM as price outperforms Ripple

A recently launched leveraged exchange-traded fund tracking XRP is gaining momentum in terms of asset inflows.

The Teucrium 2x Long Daily XRP ETF, whose ticker symbol is XXRP, has had inflows in the last four consecutive weeks. Its assets have moved from zero to over $67 million in this period. 

The ETF’s performance has also performed better than Ripple’s XRP. It has jumped by 26% since its inception, while the XRP price has risen by 16.4% in the same period. 

The XXRP ETF’s inflows are notable because of its cost structure. While one can easily buy the XRP token and pay no fee, its investors pay a premium for the fund, which has an expense ratio of 1.89%.

A 1.89% fee is high even when compared with other leveraged ETFs. The popular Direxion Daily Semiconductor Bull 3x Shares ETF, which has $9.9 billion in assets, charges a 0.75% management fee.

Similarly, the $22 billion ProShares UltraPro QQQ ETF has an expense ratio of 0.84%. XXRP’s fees mean that a $10,000 investment will cost at least $189 annually.