XRP (CRYPTO: XRP) charted a sharp recovery Monday ahead of the launch of its first-ever exchange-traded fund on Wall Street.
What happened: The fourth-largest cryptocurrency by market capitalization spiked 5% in the last 24 hours, marking a significant turnaround from the “Black Sunday” crash. XRP outgained market titans like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which rose 3.61% and 3.17%, respectively.
The coin’s trading volume jumped 95% to $13.42 billion, making it the third-most traded cryptocurrency excluding stablecoins.
The upsurge was most likely in anticipation of the debut of a leveraged ETF that will allow investors to double their exposure to daily price changes in the XRP market.
The Teucrium 2x Long Daily XRP ETF, with the ticker XXRP, is expected to launch on the NYSE Arca exchange, a subsidiary of the New York Stock Exchange.
“The Fund may enter into cash-settled XRP futures contracts trading on exchanges registered with the Commodity Futures Trading Commission,” asset manager Teucrium Investment Advisors, which is launching the fund, said on its website.
The company also flagged several potential risks associated with the fund and asked customers to weigh them before investing.
Why It Matters: Note that the investment vehicle would be different from XRP spot ETF products, for which applications have been submitted to the SEC by issuers such as Grayscale, Canary Capital, and 21Shares.
Leading Bloomberg ETF analyst Eric Balchunas said that the odds of approval of XRP spot ETFs are “pretty high.”
Price Action: At the time of writing, XRP was exchanging hands at $1.89, up 5.04% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the cryptocurrency was down 8.41%.
Read Next:
Photo courtesy: Shutterstock
