Popular ETF issuer Teucrium is set to launch the first-ever XRP exchange-traded fund in the United States.  The Crypto Basic reported the development on its X handle, noting that the fund will debut today. Notably, the Teucrium 2x Long Daily XRP ETF will list and trade on NYSE Arca under the ticker XXRP. This comes after NYSE Arca certified the listing and registration of the ETF yesterday, paving the way for its imminent launch on the trading platform. According to the fund’s prospectus, the ETF comes with a management fee of 1.89%.  First Ever XRP ETF to launch in the US tomorrow. pic.twitter.com/ZVaRFMdREX — TheCryptoBasic (@thecryptobasic) April 8, 2025 Mechanics of Teucrium XRP ETF  Teucrium designed the ETF to deliver 2x (twice) the daily performance of XRP. This indicates that if XRP delivers a daily gain of 3% on a given day, the ETF would return 6%. In contrast, if XRP closes the day with a loss of 2%, the ETF’s value would plunge by 4%.  The mechanism of doubling XRP’s daily performance categorizes XXRP as a leveraged product that inherently offers higher rewards and risks.  The ETF issuer will reference multiple benchmarks to determine the XRP pricing for its swap agreements. They include the pricing from spot XRP ETFs, the CME CF XRP-Dollar Real Time Index, and the CME CF XRP-Dollar Reference Rate.  It bears mentioning that XRP has not launched a spot ETF in the U.S. yet. Hence, the XXRP ETF will initially base its swaps on the prices of XRP ETPs launched in Europe, including the WisdomTree Physical XRP ETP and the 21Shares XRP ETP.  Top Community Figure Highlights Risks  Meanwhile, popular XRP community figure Crypto Eri highlighted certain risks associated with the ETF. According to Eri, the fund does not invest directly in XRP, unlike other XRP-related exchange-traded products.  She emphasized that the issuer designed the ETF as a short-term trading vehicle, focusing on delivering daily results. Hence, it should only appeal to traders monitoring their positions closely and frequently.   Further, she explained how XRP’s volatility could result in significant losses regardless of whether the price stays flat for a year. According to her, if the XRP price stays flat for a year but volatility spikes 25%, the fund risks losing 6.1% of its value. Similarly, a 75% volatility translates to a 43% loss, while a 100% volatility could lead to a loss of 63.2%.  Investors Remain Confident About Spot XRP ETF Approval In the meantime, investors anticipate the potential launch of spot XRP ETFs in the U.S. As previously reported, multiple asset managers, including Bitwise and Canary, seek to launch spot ETFs tied to XRP.  So far, the SEC has acknowledged most XRP ETF filings and is deliberating on whether to approve the funds for launch. Investors believe the SEC will approve at least one spot XRP ETF this year.  Data from Polymarket shows that the odds of an XRP ETF launching by the end of this year stands at 75%.