Sal Gilbertie, CEO of Teucrium Trading, shares about the journey to approach cryptocurrency ETF funds and the decision to invest in XRP, despite facing many challenges from the SEC.
He analyzes the SEC's strategic changes with the Bitcoin futures ETF and explains the reasons for choosing to develop the leveraged XRP ETF, based on Ripple's practical potential in improving cross-border payments.
MAIN CONTENT
Teucrium Trading had to withdraw its Bitcoin futures ETF application due to the SEC's requirements for low liquidity.
The SEC's changing policies prioritize faster approval processes, causing Teucrium to lose its advantage against the giants.
Teucrium chooses to focus on a leveraged XRP ETF based on Ripple's vision and trading efficiency.
What challenges has Teucrium Trading faced with cryptocurrency ETF funds?
Sal Gilbertie reveals that the SEC initially denied the Bitcoin futures ETF application due to low market liquidity, requiring Teucrium and several other companies to withdraw.
This led them to temporarily halt their applications but continue to closely monitor market fluctuations. As liquidity improved, the company confidently refiled to continue the approval process.
How have the SEC's regulatory changes affected Teucrium?
By shifting the ETF approval method to the 1940 Act with a shortened timeframe of 75 days, the SEC facilitates large corporations like BlackRock and Fidelity.
This change comes as a surprise and an opportunity loss for Teucrium, even though they were early filers. This event also becomes crucial evidence in Grayscale's lawsuit against the SEC, which Grayscale won.
The sudden change in the approval process "really confuses us" and severely impacts Teucrium's market opportunities.
Sal Gilbertie, CEO of Teucrium Trading, 2024, interview with Thinking Crypto
Why did Teucrium decide to invest in the leveraged XRP ETF?
Sal Gilbertie stated that they are not fans of coins like Ethereum or Solana but appreciate Ripple's mission to modernize the international payment system.
Ripple focuses on enhancing speed and efficiency for cross-border money transfers, replacing the outdated SWIFT system. Teucrium believes this solution will have a significant and sustainable impact in the long term.
"Anything that helps speed up the system is a promising and reasonable direction."
Sal Gilbertie, CEO of Teucrium Trading, 2024, interview with Thinking Crypto
Teucrium does not directly compete with the giants for the basic XRP ETF fund but chooses to develop a specific leveraged ETF to leverage strengths in the derivatives market and create differentiation.
Frequently Asked Questions
What is a cryptocurrency ETF?
Cryptocurrency ETFs are investment funds that simulate the value of cryptocurrency assets, allowing investors to gain exposure efficiently without directly owning them, ensuring safety and quick diversification.
How does the SEC affect the development of cryptocurrency ETFs?
The SEC adjusts regulations that determine approval timing and liquidity standards, directly affecting the speed and success rate of cryptocurrency ETF funds.
Why is XRP highly regarded in the payment sector?
XRP is designed to increase speed and reduce costs for cross-border money transfers, replacing the traditional SWIFT system with modern technology, promoting faster and safer payments.
What distinguishes leveraged ETF funds?
Leveraged ETFs use derivatives to double or triple the volatility of the underlying asset, suitable for investors with a high risk tolerance and expectations for quick returns.
What role does Teucrium play in the Grayscale lawsuit against the SEC?
The Bitcoin futures ETF application approved by Teucrium becomes crucial evidence in Grayscale's lawsuit against the SEC, contributing to legal precedents for the cryptocurrency financial industry.
Source: https://tintucbitcoin.com/xrp-va-ceo-teucrium-phan-doi-gensler/
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