Investor focus shifted to the ETF market on Monday, April 7, amid heightened tariff-driven volatility. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas highlighted the upcoming launch of the Teucrium 2x Long Daily XRP ETF, stating:
“A 2x XRP ETF is launching tmrw in US, the first-ever XRP ETF on the market. Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, altho our odds are pretty high.”
The Fund aims to deliver two times the daily price performance of XRP for a single day, not for any other period. According to the fund’s profile:
“XRP is one of the most widely traded cryptocurrencies in the digital asset market.[1] The supply and demand for XRP are often influenced by regulatory developments, technological advancements, and market sentiment, making it an active and dynamic asset for traders. XRP is an innovation with a limited history. There is no guarantee that usage will grow; declining usage could heighten volatility or lower XRP’s price, negatively affecting the Fund.”
Launching on Tuesday, April 8, the leveraged ETF comes amid an extended period of uncertainty. The SEC has yet to clarify its stance on the appeal against the Programmatic Sales of XRP ruling, contributing to the pullback from January’s high of $3.3999. The SEC’s appeal strategy may determine the fate of the XRP-spot ETF applications and influence XRP’s supply-demand trajectory.
Notably, Ripple must file its appeal-related reply brief by April 16 to contest the SEC’s appeal-related opening brief. In March, Ripple CEO Brad Garlinghouse stated that the SEC planned to withdraw its appeal. A withdrawal before Ripple’s filing deadline could help prevent a market sell-off. A resolution to the SEC vs. Ripple case could pave the way for a US XRP-spot ETF market. Investors expect XRP-spot ETFs to draw significant interest, potentially sending XRP to record highs.
The leveraged XRP ETF’s launch could give investors insights into the current demand for XRP-related products. However, ongoing tariff-fueled market volatility may weigh on near-term demand.
On Monday, April 7, XRP dropped 1.22%, adding to Sunday’s 10.38% plunge, closing at $1.8983. XRP underperformed the broader market, which advanced by 0.61%, taking the total crypto market cap to $2.47 trillion.
Several catalysts need consideration, potentially influencing XRP price trends:
See our full XRP forecast here.
While XRP extended its losses, bitcoin (BTC) faced a choppy Monday session amid tariff developments. President Trump dismissed rumors of pausing tariffs while threatening an additional 50% tariff on China on top of the upcoming 34% levy, effective Wednesday, April 9. The tariff threats impacted demand for risk assets.
Trump’s tariffs also weighed on institutional demand, capping BTC’s upside. According to Farside Investors, BTC-spot ETF flows for April 7 included:
Excluding BlackRock’s (BLK) pending iShares Bitcoin Trust (IBIT) flow data, the US BTC-spot ETF market recorded $97.7 million in net outflows, marking six outflows days in the last seven sessions.
On April 7, BTC gained 1.1%, partially reversing Sunday’s 6.14% loss to close at $79,165.
BTC scenarios include:
Several key drivers will guide crypto market sentiment in the coming days:
While recent SEC signals offer reassurance, longer-term sentiment hinges on regulatory clarity. Explore what analysts say is needed for cryptos to reach new highs.
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.