The Teucrium 2X Daily Long XRP ETF made a strong debut on April 8, attracting over $5 million in trading volume, setting a new record for altcoin ETFs. This marks a significant milestone, especially as XRP’s legal battles with the U.S. Securities and Exchange Commission (SEC) approach a conclusion, and institutional-focused XRP products emerge.
Strong Start for XRP ETF
The 2X Daily Long XRP ETF launched on NYSE Arca, seeing an impressive $5 million in volume on its first trading day. According to Eric Balchunas, Senior ETF Analyst at Bloomberg, this performance places the ETF in the top 5% of newly launched ETFs. This is particularly notable given the current market climate.
For comparison, the Solana 2X ETF (SOLT) saw significantly lower trading volume—approximately four times less than XRP’s debut. The strong demand for the XRP ETF indicates growing investor interest in leveraging positions on the coin, potentially due to XRP’s favorable legal developments and institutional attention.
A Competitive Landscape
Despite its impressive launch, Balchunas pointed out that the $5 million in trading volume is modest when compared to the $1 billion debut of the BlackRock iShares Bitcoin Trust (IBIT). While XRP’s debut was a standout in the altcoin ETF space, it remains far behind the massive volume generated by Bitcoin-related ETFs, which dominate the market.
The Outlook for a Spot XRP ETF
The momentum for XRP-related financial products continues to build. John Deaton, a prominent voice in the cryptocurrency space, emphasized that XRP’s legal status as a non-security boosts the push for spot XRP ETFs. The growing number of firms seeking to launch XRP ETFs reflects the increasing confidence in the asset.
Notably, Franklin Templeton, with $1.5 trillion in assets under management, has filed for a spot XRP ETF on the Cboe exchange. This follows Ripple Labs’ decision to drop its cross-appeal against the SEC, strengthening the case for XRP-related investment products. Grayscale is also pushing for a spot XRP ETF, potentially converting its XRP Trust into a fully-fledged ETF.
Globally, momentum for XRP investment products is also gaining traction. In Brazil, the Hashdex spot XRP ETF received regulatory approval on the B3 exchange, with the announcement contributing to a 6% surge in XRP’s price, signaling strong market sentiment.
As the regulatory and market landscape continues to evolve, XRP’s potential as an investment asset looks promising, with further ETF filings expected in the coming weeks.
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