Ripple's XRP ETF Journey: A Long, Anticipated Ride
Update on Ripple-Linked Exchange Traded Fund (ETF) for April 30: Insights and Essential Details
In a thrilling turn of events, Teucrium, a Vermont-based asset manager, has made waves as the first to launch an exchange-traded fund (ETF) in the US tracking Ripple's native token. Dubbed the Teucrium 2x Long Daily XRP ETF (XXRP), this innovative financial vehicle credits Teucrium for paving the way in the world's largest economy.
XXRP was introduced on NYSE Arca and offers investors a leveraged stake in the cryptocurrency's daily price movements. Its debut day saw approximately $5 million in trading volume, a promising start.
Just a few days ago, the US Securities and Exchange Commission (SEC) greenlighted the rollout of three more XRP ETFs, this time from ProShares. The Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF were initially slated for launch on April 30, but some speculation suggested otherwise. After a clarification from Research Analyst James Seyffart at Bloomberg Intelligence, the actual launch date is expected to be in the "short or possibly medium term."
Securities filings now indicate that these products will become available on May 14 [1][3][5].
Both Teucrium's and ProShares' investment vehicles are futures-based, offering investors exposure to XRP's price through derivatives as opposed to holding real tokens. This has led to questions surrounding when a spot XRP ETF might finally emerge in the US.
Brace Yourself for the Wait
The eagerly awaited spot XRP ETF has attracted the attention of powerful players like Grayscale, Franklin Templeton, 21Shares, WisdomTree, Bitwise, and more [4][6].
If approved, this product will provide investors with a seamless way to invest in Ripple's native token. Similar to purchasing stocks, investors would handle transactions through authorized brokerage accounts, gaining ownership of the fund's shares, which in turn secure the actual cryptocurrency to back their investments [7].
The SEC recently experienced significant leadership changes, with Paul Atkins taking the helm as Chairman. Known for his pro-crypto stance, there was a surge of hope that a spot XRP ETF might soon receive approval.
However, the Commission dampened these expectations, delaying its decision on Franklin Templeton's spot XRP ETF until June 17, 2025[1][3][5]. Fox Business's Eleanor Terrett commented that this date is "intermediate," hinting that another delay could be possible.
Despite the delay, the approval odds remain favorable. Eric Balchunas, Senior ETF analyst at Bloomberg, estimated an 85% likelihood that such a product would launch some time in 2025 [1]. Polymarket's data indicates an 80% chance[2].
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- In the upcoming years, influential names like Grayscale, Franklin Templeton, 21Shares, WisdomTree, Bitwise, and others are anticipating the approval of a spot XRP ETF, which would provide investors with a straightforward method to invest in Ripple's native token.
- Just as the Teucrium 2x Long Daily XRP ETF and the ProShares XRP ETFs offer leveraged exposure to XRP's daily price movements, the anticipated spot XRP ETF would allow investors to handle transactions through authorized brokerage accounts and gain ownership of the fund's shares, securing the actual cryptocurrency to back their investments.
- Though the Securities and Exchange Commission (SEC) has yet to approve a spot XRP ETF, recent leadership changes at the Commission, with Paul Atkins as the new Chairman, have sparked optimism about the possibility of such an approval.
- The SEC has scheduled a decision on Franklin Templeton's spot XRP ETF for June 17, 2025, but further delays could be likely according to Eleanor Terrett of Fox Business.
- Despite these potential delays, experts like Eric Balchunas, Senior ETF analyst at Bloomberg, estimate an 85% likelihood that the spot XRP ETF will launch sometime in 2025, while Polymarket's data indicates an 80% chance of this happening.
