Teucrium currently has a two-time return lever-with a correspondingly high risk
- The new XRP ETF from Teucrium offers a two-time daily return, but has a high trade risk.
- The levered structure can lead to total loss in one day-no investment instrument for passive investors
Teucrium puts on the first stock market-traded XRP fund (ETF) in the USA. The new fund called Teucrium 2x Long Daily XRP ETF is aimed at active investors who want to benefit from the daily price fluctuations of the XRP.
The levered ETF sets a double daily XRP return on a certain trading day. The product represents progressive progress in crypto -based financial instruments, but harbors great dangers for investors.
The fund turns to investors with high risk to risk
Teucrium expressly points out that the 2x Long Daily XRP ETF should be used by dealers who are geared towards short -term investments. Short -term investors who follow the market closely are the intended users because they carry out regular trading activities.
The ETF increases the investment results by leverage of the returns and thus aims to doubling the daily XRP performance. The trading lever applied to investments enables larger losses because the entire capital can be destroyed within a day.
The company emphasized that this product is best suited for investors with high risk tolerance and a strategy based on the daily market activity. Teucrium warned that this fund “has no long track record“So that investors lack historical data to evaluate the performance. The lack of such data in connection with the external -financed structure increases the financial risk for everyone who is considering this product.
Teucrium explained that XRP and the associated crypto assets are still new in the world of investments. The digital assets have a significant price volatility due to fast unexpected market movements. The company explained:
“XRP and XRP-related systems are relatively new systems. They are subject to unique and considerable risks and goods in the past..“
Volatility and leverage have serious risks
The Teucrium 2x Long Daily XRP ETF has a structure that sets up its commitment every trade day. Over time, the performance of the fund will differ significantly from that that XRP lasts over a longer period of time with double return. The ETF is not a cheap option for investors who try to pursue a longer increase in value of the XRP market.
The company made it clear that all investors have to understand how both leverage and impetus influence the fund results. The minimal negative price movements of XRP will lead to considerable losses for the ETF investors due to the two -time commitment of the fund. The fund is based on short -term momentum, while experts often have to pursue it for effective risk control.
Teucrium has given a significant warning: “The value of a system in the fund can decrease considerably and without warning, including zero.. ” The litigation reflects the increasing demand for crypto -related financial products, but also underlines the need for a well -founded decision -making in volatile markets.
No Comments