Teucrium rides XRP demand as its XXRP ETF becomes its best performing fund

XXRP, the leveraged XRP exchange-traded fund (ETF) launched a few months ago, has surpassed $300 million in net flow. With the ETF reaching $323.6 million in inflows, it becomes the first XRP ETF in the US to reach the milestone.

The milestone highlights the positive performance for the 2x long daily ETF. Since launching in April, the product has seen significant inflows, enough to account for more than half of the total net flows by US-based XRP ETFs.

While this reflects its first mover advantage, XXRP‘s success has also led to the launch of more derivatives-based XRP ETFs in the US. Volatily Shares launched two ETFs in May with an unlevered XRPI and 2x leverage XRPT, while ProShares also launched 2x leverage UXRP on July 16.

Despite the recent milestone, XXRP share value fell 2.36% to $45.87 as of July 29 and has already recorded another 1% decline in pre-market trading. This is mostly due to the performance of XRP itself, with the token down in the last 24 hours amidst what appears to be a general market decline.

Even with the drop, XRP remains one of the best-performing assets this year with a 33.89% gain year-to-date as it continues to trade above $3. The token has increased in value by more than 43% in the last 30 days.

XXRP is Teucrium’s most successful product

Meanwhile, XXRP has also been a game-changer for Teucrium. The ETF issuer had mostly focused on agricultural products before now, but the newly launched XXRP ETF has also become its biggest ETF in less than five months. According to information about the fund on the Teucrium page, XXRP has a total net asset of over $400 million.

Speaking on that development, Teucrium Trading president Sal Gilbertie said on CNBC that it is the most successful ETF launched by the company in its 16 years of existence, and he has never seen such a surge in interest and inflow in a product before now.

He said:

“There is enormous interest in XRP. They call it the XRP Army, and I realize they call it that for a reason. We launched this fund, it will be 16 weeks tomorrow, and the money that has come in is quite extraordinary, hundreds of millions of dollars. It is our most successful product.”

Gilbertie added that it is clear that investors want a levered ETF, and  Teucrium is already a pro in derivatives products. He added that he is familiar with XRP and believes the product was designed for aggressive traders, and there is significant demand for it.

The  CEO added that the profile of XXRP differs from that of a spot product, noting that investors who want to allocate part of their portfolio to crypto should go for unlevered funds that hold the token and track its price. He noted that XXRP is meant to be held for one day, and people must understand that.

He concluded saying,  “If you just want exposure to a token, buy an unlevered fund. If you want to trade a token for price movement, then a levered fund could be an option for you.”

SEC announces more ETF developments as the market waits for altcoin ETFs

While derivative ETFs for XRP and several other altcoins have been seeing massive interest, most market observers appear to be waiting for the Securities and Exchange Commission (SEC) to finally approve spot ETFs for altcoins such as Solana and XRP.

There are no signs of when that would happen yet, even as positive developments from the regulator suggest it could be soon. The SEC has already approved the conversion of two crypto index funds to ETFs, although it has not allowed Grayscale and Bitwise to list the ETFs.

Interestingly, the regulator has just approved in-kind creation and redemption for spot Bitcoin and Ether ETFs with an order granting accelerated approval. The SEC stated that it found the proposals consistent with the Exchange Act and relevant regulations.

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