The first "2x XRP Leveraged" fund in the United States has been launched, analysts say: the approval of the XRP Spot ETF is just a matter of time.

U.S. asset management firm Teucrium has launched the first Ripple (XRP)-linked exchange-traded fund (ETF) under the symbol XXRP on NYSE Arca, a trading platform of the New York Stock Exchange. (Synopsis: Ripple settles SEC to "get back $75 million fine", expert: foreshadows XRP spot ETF will be approved) (Background supplement: Ripple "solid landing" in the United States: SEC lawsuit ends, starts home business) The first exchange-traded fund (ETF) related to Ripple (XRP) in the United States is officially listed! According to the official website of Teucrium Investment Advisors LLC, a Vermont-based asset management company, the company has launched the first exchange-traded fund (ETF) related to Ripple (XRP) on the New York Stock Exchange's trading platform NYSE Arca, trading under the symbol XXRP. Leveraged ETFs However, it is worth noting that XXRP is not the "spot" XRP ETF that investors have been waiting for, it is a "leveraged" ETF designed to provide investment returns equivalent to twice the daily price performance of XRP. Teucrium also makes it clear on its official website: If you have a short-term, high-conviction view on XRP prices, you can consider exploring the Teucrium 2x Long Daily XRP ETF. At the same time, according to the product description, XXRP's management fee is 1.85% and the proceeds will be distributed on a monthly basis. On the ETF list of Depository Trust and Clearing Corporation (DTCC), a major U.S. securities depository and clearing firm, Teucrium's XXRP is currently the only XRP-linked fund, highlighting the uniqueness of its market. Why not spot ETFs? In general, the first ETF of a new asset class is usually a spot product designed to directly track the price of the underlying asset. In this regard, Eric Balchunas, a senior ETF analyst at Bloomberg, also commented on the X platform: A 2x XRP ETF will be launched in the United States, which is the first XRP ETF on the market. But strangely (perhaps for the first time), the first ETF of a new asset is leveraged. Spot XRP is still not approved, although we believe the chances of it being approved are quite high. Balchunas' comments point to a common question in the market: Why are leveraged ETFs launching ahead of spot ETFs? Presumably the reason for this may have to do with the attitude of regulators, the strategy of the issuer, or the specific needs of the market – since leveraged ETFs are usually based on futures contracts, and the US Securities and Exchange Commission (SEC) is relatively more receptive to cryptocurrency ETFs based on regulated futures markets. In contrast, spot ETFs directly hold cryptocurrencies themselves, and the SEC still has more concerns about spot market regulation, custody security, market manipulation, and other issues. When will the spot XRP ETF be launched? Although leveraged ETFs have come out, the market is more focused on the progress of spot XRP ETFs. At present, a number of US asset management companies, including Grayscale, Bitwise, etc., have submitted application documents for spot XRP ETFs to the SEC. Earlier this year, the SEC also confirmed receipt of an acknowledged petition, which was seen as a positive sign that the review process is moving forward. At the same time, the multi-year dispute between Ripple and the SEC is now nearing its end, and at the end of last month, Ripple General Legal Officer Stuart Alderoty announced that Ripple Labs and the SEC have reached a preliminary settlement agreement, which is expected to end with the parties withdrawing their appeals and the SEC refunding $75 million of the $125 million fine Ripple paid last year, leaving only $50 million. Now, the first ETF product directly related to XRP has landed in the United States, once again increasing the likelihood of spot XRP ETF approval. As Nate Geraci, president of The ETF Store, previously commented: With the end of the Ripple case, it is clearly only a matter of time before the approval of the XRP spot ETF is passed. Related Stories Ripple and SEC Benefits? XRP ecological DEX single-day trading volume is less than $50,000 From cryptocurrency to space colonization" Ripple founder smashed $1 billion to build a private space station: centrifugal force to achieve artificial gravity XRP market value surpasses USDT to become the 3rd largest token" Ripple CEO is optimistic about XRP ETF launched at the end of this year, does not rule out IPO (the first "2x XRP leveraged" fund in the United States is launched, analysts: Ripple spot ETF approval is only a matter of time" This article was first published in BlockTempo The most influential blockchain news media.