Teucrium CEO Reveals Reason Behind XRP ETF Success

Teucrium Trading has seen strong investor interest in its new 2x Long Daily XRP ETF (XXRP), making it the company’s most successful product launch so far. 

The company’s executives said the fund has attracted large inflows in a short time. 

This shows that more investors want easier and safer ways to gain exposure to digital assets without actually owning cryptocurrencies. 

Leverage Crypto ETF sees High Demand from the XRP Community

During a recent interview, Teucrium’s President and CEO, Sal Gilbertie, noted that inflows into the XRP fund have reached several hundred million dollars in about 16 weeks. 

He attributed this strong performance to widespread investor enthusiasm ahead of a potential XRP ETF approval. Much of this interest comes from the active XRP community, which has helped the fund gain strong early growth. 

Gilbertie noted that altcoins like XRP are attracting more attention from investors. However, he believes the bigger long-term opportunity lies in companies that use blockchain technology for real-world solutions.

He compared the present stage of blockchain innovation to the early years of the internet, when infrastructure development created lasting economic value.

Teucrium’s 2x Long Daily XRP ETF Risks and How It Works

The Teucrium 2x Long Daily XRP ETF (XXRP) was launched on April 8, 2025, and is listed on NYSE Arca. The fund aims to deliver twice the daily movement of XRP before fees and expenses. 

It does not hold XRP directly but instead uses financial contracts called total return swaps with major institutions. It may also use cash-settled XRP futures to reach its daily target.

The fund is designed for short-term performance tracking. It is not meant to maintain a two-times return over several days because market volatility and compounding can cause results to differ over time.

Teucrium warns that daily compounding and market swings can cause returns over several days to differ from the expected 2x result. Even if XRP’s price stays the same or goes up, the ETF can still lose value because of daily adjustments and the effects of leverage. 

Other risks include tracking mistakes, low liquidity, counterparty issues, and wider trading spreads. Like most leveraged ETFs, XXRP is more suitable for active traders than for long-term investors.

XRP and XXRP Market Update

At the time of writing, XRP is trading at $2.62, up by 1.12% in the past 24 hours and a 26% rise year-to-date, according to CoinMarketCap data. Meanwhile, Teucrium’s XXRP ETF closed Friday’s session at $22.90, up 7.06% for the day, though still down 15.03% year-to-date, as reported by Yahoo Finance data. 

Despite short-term price swings, investor interest in XRP-based products remains strong. The growth of ETFs in the digital asset market continues to gain momentum.