Latest news with #Teucrium2xLongDailyXRPETF
Globe and Mail
18-04-2025
- Business
- Globe and Mail
Is This Latest Catalyst for XRP a New Reason to Buy It?
XRP (CRYPTO: XRP) is no stranger to catalysts big and small, as its holders know. And it just got another one that could imply good times ahead. But does this new development materially change its upside for investors, or is it a drop in the bucket? Let's check out what just happened and answer that question. Will this new fund be a boon? On April 8, Teucrium Investment Advisors, an asset manager, introduced an exchange-traded fund (ETF) that offers investors leveraged exposure to XRP, a crypto designed to facilitate money transfers. That fund, the Teucrium 2x Long Daily XRP ETF, should not be confused with the ETFs currently under consideration by the Securities and Exchange Commission (SEC), which are not yet approved, and which offer investors spot exposure that's similar to holding the coin directly in their own wallet. This new ETF implies several things for XRP's merits as an investment. First, the new fund is notable because it suggests that there is demand for tools that let investors in traditional financial sectors get exposure to more-speculative and more-volatile formulations of XRP. Teucrium wouldn't be providing the fund otherwise. More importantly, the fund is a path for investors to still buy the coin even if they aren't willing to engage with the cryptocurrency sector using its native technology. So it could attract new capital that wouldn't otherwise be invested into XRP directly. Another factor is that there will be some added demand for XRP from Teucrium, assuming its ETF gains traction, because the manager needs to back the fund by holding the coin. That should result in a negligible increase to the coin's price over time. When paired with the future approval of other ETFs from other (and larger) asset managers, the total impact could be moderately positive. Lastly, the ETF is a vote of confidence that XRP isn't going away. Although XRP wasn't exactly in need of such a vote from an asset manager before, given that it's among the largest of cryptocurrencies, it's another point in favor of the idea that XRP already has social proof and widespread acceptance, which makes it incrementally less risky than before. There aren't any real downsides to the new ETF hitting the scene, at least not for those who hold XRP directly. So overall, it's a modestly bullish development. You don't have to go out on a limb here You don't need to go out and buy shares of this ETF if you already hold XRP. The fact that it's leveraged makes it inherently a bit too risky for most investors, not to mention being a much higher-maintenance asset in comparison to just buying and holding the coin itself. There simply isn't much reason to dabble here. Furthermore, the new ETF isn't a valid reason to go out and buy more XRP than you're comfortable with holding. Any price increases stemming from the new ETF will take some time to unfold, and you probably won't notice them if the other ETF-related catalysts occur, as those are likely to be much stronger. The fact that there aren't any new risks being introduced means this is a sweetener, but it doesn't change the fundamental investment thesis for buying XRP, nor does it reduce the coin's volatility or its exposure to other risks. Therefore, overall, if you don't do anything in response to the new fund, you're not going to be missing out on much. If you're already holding XRP and looking for an excuse to buy some more, there are still probably going to be better reasons coming along fairly soon. But there's no rule that says you can't take the opportunity today and then buy more later. Just remember that there's not much point in making an additional investment in the coin if you're going to sell it before a minor catalyst like the new ETF can exert its full impact over time. Should you invest $1,000 in XRP right now? Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $679,900!* Now, it's worth noting Stock Advisor 's total average return is796% — a market-crushing outperformance compared to155%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 14, 2025
Yahoo
11-04-2025
- Business
- Yahoo
XRP address count hits record high as new ETF debuts
The number of XRP addresses has hit a record high amid the recent turmoil in the crypto market in the aftermath of President Donald Trump's tariff war. Even as XRP is struggling to reclaim the price level of $2, addresses holding at least 1 token have hit a record high of 6.26 million, crypto analyst Ali Martinez noted on X (formerly Twitter). The accumulation suggests that traders are convinced of the potential value appreciation in XRP in the long run even as the market remains extremely volatile. There is another piece of positive news for the XRP community. The first-ever XRP exchange-traded fund (ETF) debuted in the U.S. on Apr. 8. A crypto ETF is traded on stock exchanges and gives investors exposure to cryptocurrencies without the need for them to directly own or trade the underlying assets themselves. Launched by Vermont-based Teucrium Investment Advisors, the Teucrium 2x Long Daily XRP ETF (XXRP) gives a 2 times leveraged exposure to XRP by using swap agreements. On its first day on the NYSE Arca, XXRP recorded a trading volume of $5.43 million. Senior ETF analyst Eric Balchunas called the fund's performance 'very respectable,' given the market conditions. He put it among the top 5% of new ETF launches. Note that XRP is expected to be included in the U.S. crypto stockpile as perTrump's executive order. Ripple's years-long legal case with the federal securities regulator is nearly over. However, XRP has failed to reclaim the price level of $2 over the past two days. The token was trading at $1.79 at press time, as per Kraken's price feeds. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
Teucrium To Launch First XRP ETF in U.S. on Tuesday, Spot ETF Still Awaiting Approval
Teucrium Investment Advisors LLC is set to launch the first-ever XRP-based exchange-traded fund (ETF) in the U.S. on April 8. The Teucrium 2x Long Daily XRP ETF (XXRP) will be a leveraged fund designed to provide investment results that correspond to twice the daily price performance of XRP, the fourth-largest crypto by market capitalization. XXRP will begin trading on NYSE Arca and will have a management fee ratio of 1.85%, with monthly distributions. According to Teucrium, the fund is aimed at investors with a short-term, high-conviction view on XRP prices. While Teucrium's ETF represents a significant development, multiple U.S. issuers, including Grayscale and WisdomTree, have submitted applications for spot XRP ETFs, which are still pending review by the U.S. Securities and Exchange Commission (SEC). Analysts suggest the chances of approval for these spot ETFs have increased, particularly following Ripple Labs' recent settlement with the SEC regarding the classification of XRP as a financial security. Ripple agreed to pay a $50 million fine, reduced from a previous $125 million penalty. Bloomberg Senior ETF Analyst Eric Balchunas noted the unusual nature of launching a leveraged ETF as the first for a new asset. He remarked on the uncertainty surrounding the demand for spot XRP ETFs, especially in light of the limited traction seen by Ethereum ETFs in the market. With the SEC's review process ongoing, the future of spot XRP ETFs remains uncertain, though analysts believe XRP and Solana could be potential contenders for approval following Bitcoin and Ethereum. Sign in to access your portfolio
