XRP ETF Launch Impresses Even In Bear Market, Says Analyst

Teucrium’s newly launched 2x XRP ETF on the New York Stocks Exchange recorded $5.43 million in turnover during its first day of trading on April 8, despite XRP prices hitting a five-month low.

The ETF, trading under the ticker XXRP, achieved this milestone as cryptocurrency markets faced widespread selling pressure. Bloomberg Senior ETF Analyst Eric Balchunas called the performance “very respectable” given the current bearish market conditions.

According to market data, XRP’s price dropped to $1.61 on Monday, marking its lowest point in five months. The price briefly recovered to over $1.87 on Tuesday before falling again to $1.69 by evening. Even with these unstable price movements, Teucrium moved forward with its ETF launch, aiming to give investors a way to profit from price swings in either direction.

$XXRP (2x XRP ETF) saw $5mil in volume on Day One, very respectable, esp considering the mkt conditions. That puts it in approx top 5% of new ETF launches, and about 4x what the 2x Solana ETF $SOLT did (altho both 200x less than King IBIT). pic.twitter.com/u3QQq5yuHv

— Eric Balchunas (@EricBalchunas) April 8, 2025

Based on reports from Bloomberg’s Balchunas, the XXRP ETF’s first-day trading volume was about four times higher than what Solana’s similar 2x ETF saw on its launch day. This performance puts Teucrium’s product in the top 5% of all new ETF launches. However, the $5.43 million figure still pales in comparison to BlackRock’s Bitcoin ETF debut, which saw trading volume roughly 200 times larger.

The altcoin community has responded positively to the ETF launch, especially considering the harsh market conditions. Data shows that 137,000 traders faced liquidations in the 24 hours surrounding the launch, with total losses exceeding $413 million across cryptocurrency markets.

Some XRP supporters have suggested that while XXRP’s volume was much smaller than BlackRock’s Bitcoin ETF (IBIT), a potential spot ETF (which some have dubbed “IXRP”) could provide stronger competition.

Unlike spot ETFs that directly hold the underlying asset, Teucrium’s XXRP does not invest directly in XRP tokens. Instead, it’s designed to deliver twice the daily performance of XRP’s price movements, which amplifies both gains and losses for investors.

Community figure Crypto Eri warned about the ETF’s built-in risk factors, noting that even if XRP’s price stays flat, volatility alone could cause significant losses. For example, if XRP experiences 25% volatility, XXRP holders could see a 6% loss. With 70% volatility, those losses could balloon to 40%.

The launch comes as more than 10 asset managers have filed applications with the SEC for spot XRP ETFs. Major firms like Grayscale and Franklin Templeton have submitted applications, though BlackRock has not yet expressed interest in launching an XRP-specific ETF product.

Featured image from Unsplash, chart from TradingView