The first XRP ETF was launched in the United States on Tuesday; the Spot ETF is still pending.

Source: The Block

Teucrium Investment Advisors LLC will launch an XRP-based exchange-traded fund (ETF) on Tuesday, marking the first XRP-based ETF in the U.S. market.

Multiple US issuers have applied for spot XRP ETFs, and these applications are still under review by the US Securities and Exchange Commission (SEC).

An analyst stated that the likelihood of approving a spot XRP ETF has increased this year, but the demand for these funds remains uncertain.

Teucrium Investment Advisors LLC, an asset management company based in Vermont, will launch the first XRP-based exchange-traded fund in the U.S. market on Tuesday.

Teucrium 2x Long Daily XRP ETF (XXRP) is a leveraged fund based on the cryptocurrency XRP, which ranks fourth by market capitalization, and aims to provide investment results corresponding to twice the daily price performance of XRP.

The company stated on its official website: "If you have a high conviction view on the short-term price of XRP, you might consider exploring the Teucrium 2x Long Daily XRP ETF."

According to its description, XXRP will begin trading on NYSE Arca on April 8, with a management fee rate of 1.85%, distributed monthly.

On the official list of active and pre-launch ETFs from the Depository Trust & Clearing Corporation (DTCC) in the United States, Teucrium's XXRP is the only fund related to XRP.

Eric Balchunas, a senior ETF analyst at Bloomberg, stated in a post on X: "The U.S. will launch a 2x XRP ETF, which is the first XRP ETF in the market."

Balchunas also added: "The first ETF for the new asset is leveraged, which is strange (possibly for the first time). Spot XRP has not yet been approved, although our probability is quite high."

Uncertainty in spot ETF demand

Multiple U.S. issuers, including Grayscale, WisdomTree, and Bitwise, have applied to submit applications to the U.S. Securities and Exchange Commission, driven by the positive changes in cryptocurrency regulation under President Trump.

Earlier this year, the SEC confirmed several spot XRP ETF applications, indicating that the review process is progressing.

Meanwhile, Ripple Labs, which creates and supports the development of XRP, agreed to settle with the SEC last month, ending years of legal disputes over whether XRP is considered a financial security. Ripple agreed to pay a fine of $50 million, which is a reduction from the $125 million fine imposed last August.

Min Jung, a research analyst at Presto Research, stated: "With the SEC dropping its appeal, a key legal hurdle has been cleared, increasing the likelihood of XRP ETF approval. After Bitcoin and Ethereum, XRP or Solana are strong contenders."

However, Jung pointed out that the demand for spot XRP ETFs remains uncertain. "The appeal of Ethereum ETFs is limited, and institutional investors still mainly believe that there is 'no second choice.'"

According to The Block's XRP price page, as of 11 PM Eastern Time on Monday, the trading price of the cryptocurrency was $1.91, up 0.64% in the past 24 hours.