The US -based investment company Teucrium Investment Advisors is preparing to launch the XRP -based leverage stock market investment fund (ETF). The Fund aims to provide a double -leverage return strategy to investors who want to invest in the Ripple token. The product, which is announced under the name “Teucrium 2x XRP ETF (XXRP), allows investors the opportunity to be exposed to XRP price movements. The transaction process is expected to approval of the Spot ETF of XRP (NYSE Arca).
The first leverage XRP is opened as ETF
The fund introduced by Teucrium is the first XRP -based leverage ETF. The 2x leverage offered by the fund means that a 1 percent change in Ripple’s price is reflected on the value of the fund by 2 percent. Although this strategy has high return potential for investors who want to get a short -term position, it contains the same risk of high risk. Investors should be careful especially against sudden price fluctuations.
The management fee of the fund is determined as 1.85 %. This ratio is at a high level that can be considered compared to similar products in the market. Teucrium says that the decrease in use observed in the Ripple network and the fluctuation in the XRP price may directly affect the fund performance. The company emphasizes that the target audience of the product is investors focusing on short -term investment strategies.
Spot XRP ETF approval is still waiting
Teucrium’s leveraged ETF step came as the Spot ETF approval process for XRP continued. The US Securities and Stock Exchange Commission (SEC) is currently examining the applications of many major investment companies such as Wisdomtree, Bitwise, 21shares, Canary Capital and Franklin Templeton. While there is no definite information on when the approval process will be completed, market participants have cautious optimism for a positive result.
Eric Balchunas, one of the Bloomberg Intelligence analysts, considered the launch of a leveled ETF as “unusual” as the Spot ETF was approved. Balchunas pointed out that such strategic moves can create different ways of investment under regulatory uncertainties. It is stated that the fund aims for investors who want to take more speculative positions with the current structure.
XRP attracted attention by gaining 6.5 percent in the last 24 hours. This rise may be fed both from the recovery in the general crypto currency market and the increasing interest in the new ETF developments. However, experts suggest investors take into account the risks as well as potential earnings in such products.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
