XRP ETF to debut as a 2x utilized product on the NYSE Arca

A 2x leveraged XRP exchange-traded fund ( ETF ) will be launched on April 8th, according to the U.S.-based asset manager Teucrium Investment Advisors ‘ website. &nbsp,

The XXRP ETF, which is based on Ripple Labs ‘ local sign, may be listed on NYSE Arca.

Eric Balchunas, a senior researcher for Bloomberg ETF, noted the launch’s unusualness via X on Monday.

It’s” Very odd ( perhaps a first ) that a new asset’s first ETF is leveraged,” he says. Although our chances are very high, Spot XRP also won’t be approved, he wrote. &nbsp,

The account is designed to offer half the normal performance of Ripple’s XRP coin and is designed for short-term trading. A administration fee of 1.85 % will be collected by Tucrium.

In its bank literature, Teucrium cited declining usage and volatility as risks that might have a negative impact on the performance of the ETF.

The U.S. Securities and Exchange Commission ( SEC ) is currently reviewing a wave of spot XRP ETF applications. &nbsp,

Ideas have been submitted by fund managers, including Franklin Templeton, Bitwise, 21Shares, Canary Capital, and WisdomTree.

Many spot XRP ETF applications have been acknowledged by the SEC. In the upcoming months, more XRP investment vehicles may be available in the midst of decisions.

In January 2024, the SEC granted the first shipment of area Bitcoin ETFs, increasing interest in ETFs linked to XRP, Litecoin, Dogecoin, and Solana. &nbsp,

Following the SEC’s shift to positive crypto legislation this time, there was a rise in applications from funding firms vying to take place ETFs based on altcoins to market.

One of a number of cases against crypto companies that have since been dismissed, Teucrium’s ETF release comes after the SEC voted in March to end a longstanding legal battle with Ripple, creator of XRP tokens, in a case against them. A$ 50 million fine was paid.

XRP is currently trading at$ 1.87, down 3 % over the previous 24 hours.

edited by Sebastian Sinclair