The first XRP ETF was launched in the United States and this was its debut
A leveraged investment fund by 2 in the cryptocurrency XRP from Ripple is now trading on the stock exchanges.
The U.S. financial market welcomed yesterday the first exchange-traded fund (ETF) linked to XRP, the cryptocurrency from Ripple Labs, at a time marked by global economic turbulence.
Managed by Teucrium Investment Advisors, this financial product debuted with a trading volume of 5 million dollars, a start that analysts consider solid given the circumstances.
The fund, named "Teucrium 2x Long Daily XRP ETF" which began trading yesterday under the ticker XXRP, seeks to double the daily performance of XRP through 2x leverage.
This means that if XRP rises by 5% in a day, the ETF should increase by 10%, and if it falls by 5%, the fund would drop by 10%. However, its design is intended for short-term trading, as the effect of daily compounding can distance its long-term performance from double the return of XRP.
With an expense ratio of 1.85%, this ETF targets investors willing to navigate risks in short time horizons.
Eric Balchunas, an ETF specialist at Bloomberg Intelligence, noted that the recorded volume of 5 million dollars at debut is "very respectable".
