#XRPETF by #MkfHashmi
An XRP ETF (Exchange-Traded Fund) is a financial product that tracks the price performance of XRP, a cryptocurrency developed by Ripple Labs for fast, low-cost cross-border payments. It allows investors to gain exposure to XRP’s price movements without directly owning or managing the cryptocurrency. ETFs are traded on stock exchanges, offering a regulated and accessible way for retail and institutional investors to invest in XRP through traditional brokerage accounts.
There are two main types of XRP ETFs discussed in recent developments:
1. Leveraged XRP ETF: The first XRP-based ETF in the U.S., launched by Teucrium Investment Advisors on April 8, 2025, is the Teucrium 2x Long Daily XRP ETF (ticker: XXRP). This leveraged fund aims to deliver twice the daily price performance of XRP using swap agreements and other derivatives, not by holding XRP directly. It has a management fee of 1.85% and is designed for short-term traders due to its high-risk, high-reward nature. It traded $5 million in volume on its debut, marking a successful launch.
2. Spot XRP ETF: These are unleveraged funds that aim to directly track XRP’s spot price by holding the cryptocurrency. As of April 27, 2025, no spot XRP ETF has been approved in the U.S., but several firms, including Bitwise, Grayscale, Franklin Templeton, 21Shares, and WisdomTree, have filed applications with the SEC. The SEC is reviewing these, with decisions expected by mid-October 2025. Approval odds are estimated at 65-79% by analysts and Polymarket bettors, boosted by a pro-crypto regulatory shift and Ripple’s settled SEC lawsuit.
