On Tuesday, Teucrium’s leveraged fund will introduce the first XRP ETF in the U.S. market.

Teucrium Investment Advisors is launching the first-ever XRP exchange-traded fund (ETF) in the United States, providing a 2x leveraged exposure to the cryptocurrency.

The Teucrium 2x Long Daily XRP ETF (XXRP) will start trading on the NYSE Arca this Tuesday, offering investors a way to gain double the daily performance of Ripple’s XRP token. This marks the debut of a leveraged ETF for XRP, ahead of the SEC’s approval of a traditional “spot” ETF, which remains under review.

“This is quite rare—possibly even a first—where a leveraged ETF arrives before a spot ETF for a new asset,” commented Bloomberg Intelligence’s Eric Balchunas in a post on X. “Although a spot XRP ETF hasn’t been approved yet, we’re optimistic that it will eventually get the green light.”

Typically, ETFs tracking new and emerging assets like cryptocurrencies start with unleveraged “spot” funds, which directly hold the underlying asset. More complex products, such as leveraged ETFs, are usually introduced later as the market matures.

Teucrium has set a management fee of 1.85% for its leveraged ETF. However, the company also cautioned that XRP’s price volatility and decreasing transaction volume on the Ripple network could impact the fund’s performance. These concerns reflect broader debates over XRP’s adoption and its future in the market.

Momentum for XRP ETFs Grows Amid Ripple’s Legal Advancements

The launch of Teucrium’s leveraged ETF coincides with a surge of filings for spot XRP ETFs, which are still awaiting approval from the SEC. Major financial players such as WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton have all put forward proposals to bring non-leveraged XRP ETFs to market.

The SEC has acknowledged these proposals, and decisions are expected soon, which could pave the way for more options for investors looking to gain exposure to XRP through regulated financial products.

Meanwhile, XRP has gained 6.5% over the past 24 hours, aligning with an overall positive trend in the broader crypto market.