- Teucrium’s 2X Long XRP ETF sees impressive volume on its first day, outperforming similar Solana products.
- Growing optimism around XRP ETFs fueled by positive legal developments and major firms entering the race.
Teucrium’s 2X Long Daily XRP ETF made a splash on its first day of trading. While it outperformed similar Solana-based products, it still has a long way to go to catch up with Bitcoin’s dominance in the ETF market.
XRP ETF Momentum Builds
The Teucrium 2X Long Daily XRP ETF, which allows investors to leverage their positions in XRP, launched on April 8 and saw a trading volume of $5 million. According to Bloomberg Senior ETF Analyst Eric Balchunas, this puts it in the top 5% of new ETF launches, which is particularly impressive given the current market conditions.
“$XXRP (2x XRP ETF) saw $5mil in volume on Day One, very respectable, esp considering the market conditions. That puts it in approx top 5% of new ETF launches, and about 4x what the 2x Solana ETF $SOLT did (although both 200x less than King IBIT),”
said Eric.
This product was given the green light on 7th April by the NYSE Arca.
This strong start comes as XRP experiences positive developments in its legal battle with the SEC. The potential end of the lawsuit has fueled speculation about the approval of a spot XRP ETF, similar to those already available for Bitcoin.
A similar product, the Solana 2X ETF (SOLT), saw roughly four times less volume than XRP’s debut. This difference highlights the specific investor appetite for XRP, which may be driven by factors like its lower price point compared to Solana, ongoing legal developments, and speculation surrounding potential ETF approvals.
While the XRP ETF‘s debut was impressive, it’s important to note that it pales in comparison to the BlackRock iShares Bitcoin Trust (IBIT), which saw over $1 billion in volume on its first day. This highlights the significant difference in market capitalization and investor confidence between Bitcoin and XRP.
Investment giant Franklin Templeton, managing $1.5 trillion in assets, recently filed for a spot in the ETF. This move indicates a major stakeholder in the industry, acknowledging XRP’s potential as a viable investment asset for a wider audience.
Similarly, Grayscale is actively pursuing the conversion of its existing XRP Trust into a full-fledged ETF, which would open up XRP exposure to a wider range of investors who prefer the ETF structure. These filings collectively indicate a growing belief among institutional investors that XRP has a place in the regulated investment landscape.
The momentum around XRP is not confined to the United States; it’s a global phenomenon. In Brazil, the Hashdex spot XRP ETF has already secured regulatory approval and is set to list on the B3 exchange. This marks a significant step in XRP’s international acceptance and accessibility.
The news of the Brazilian ETF approval triggered a 6% price jump for XRP, showing positive market sentiment and investor enthusiasm surrounding XRP-related investment products worldwide. Today XRP is trading at $1.82, down 3% in the last 24 hours, with a trading volume of $7.41B.
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