Teucrium Investment Advisors LLC is set to launch the first-ever XRP-based exchange-traded fund (ETF) in the U.S. on April 8.
XXRP will begin trading on NYSE Arca and will have a management fee ratio of 1.85%, with monthly distributions. According to Teucrium, the fund is aimed at investors with a short-term, high-conviction view on XRP prices.
While Teucrium’s ETF represents a significant development, multiple U.S. issuers, including Grayscale and WisdomTree, have submitted applications for spot XRP ETFs, which are still pending review by the U.S. Securities and Exchange Commission (SEC).
Analysts suggest the chances of approval for these spot ETFs have increased, particularly following Ripple Labs’ recent settlement with the SEC regarding the classification of XRP as a financial security. Ripple agreed to pay a $50 million fine, reduced from a previous $125 million penalty.
Bloomberg Senior ETF Analyst Eric Balchunas noted the unusual nature of launching a leveraged ETF as the first for a new asset. He remarked on the uncertainty surrounding the demand for spot XRP ETFs, especially in light of the limited traction seen by Ethereum ETFs in the market.
With the SEC’s review process ongoing, the future of spot XRP ETFs remains uncertain, though analysts believe XRP and Solana could be potential contenders for approval following Bitcoin and Ethereum.
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