Teucrium CEO Says They Launched an XRP ETF Because He Sees Ripple “Hopefully” Replacing SWIFT

The Teucrium CEO has revealed that the firm launched an XRP ETF because he sees Ripple “hopefully” replacing SWIFT.

In a recent interview on the Thinking Crypto podcast, Teucrium CEO Sal Gilbertie explained why his firm launched a leveraged XRP exchange-traded fund (ETF), and why he believes XRP stands out in the crypto ecosystem.

Speaking with host Tony Edward, Gilbertie shared how Teucrium’s background in derivatives and his personal views on Ripple’s long-term strategy led to the creation of the Teucrium 2x Long Daily XRP ETF (XRP).

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According to Gilbertie, while he didn’t originally invest in crypto himself, he always appreciated the concept. As someone who spent much of his career trading complex derivatives like swaps and futures, he immediately recognized the potential when Bitcoin futures became available.

Teucrium CEO Explains Why They Went for XRP

However, it was XRP that caught his attention. The Teucrium CEO said he never felt drawn to tokens like Ethereum or Solana. On the other hand, XRP made sense to him because of its practical use in finance. 

His own frustration with slow, outdated banking systems helped him connect with Ripple’s mission to modernize cross-border payments. He said, “I understand the financial system. I understand the banking system to some degree, and I understand, as we all do, when you try to send a wire, it’s a hassle.”

He highlighted how Ripple’s team has spent years building the foundation to upgrade how global money transfers work. He believes that effort puts them in a strong position to lead, suggesting they could “hopefully” replace SWIFT.

“The Ripple team, from their outset, have been out there laying the groundwork in the background to change the financial system… primarily through replacing, hopefully, the Swift system,” he remarked.

Gilbertie pointed to Ripple’s focus and professionalism, saying they stayed consistent in their goal to improve financial infrastructure. He believes XRP will likely come out on top in the race to modernize payment systems, citing its speed and growing market share. “We think they’re going to win the game in the transfer system,” he stated.

A Move That Paid Off

Meanwhile, Gilbertie noted that rather than competing with other giants in the spot XRP ETF space, Teucrium focused on its expertise in leveraged products. Gilbertie knew the firm couldn’t outmuscle the industry’s biggest names, so they carved out their own lane by launching a double-exposure XRP ETF. 

Since XRP futures weren’t available at the time, Teucrium structured the fund using swaps based on a Swiss ETF that held XRP. Notably, this workaround allowed them to launch first.

Interestingly, the move paid off. Late last month, Teucrium’s 2x XRP ETF became the first US XRP ETF to cross the $300 million AUM mark. 

Gilbertie credited the fund’s performance to strong demand from the XRP community, describing them as an “army”, and the appetite among traders for high-risk, high-reward products.

Earlier Frustration with Bitcoin Futures 

Meanwhile, during the Thinking Crypto podcast, Gilbertie also shared the setbacks Teucrium faced with Bitcoin ETF filings. Specifically, the firm filed early under the 1933 Act, which required a longer review process.

However, the then SEC Chair Gary Gensler later shifted the path for approval toward 1940 Act filings, which involved shorter timelines. As other firms rushed in under the new guidelines, Teucrium lost its early lead. 

Gilbertie said the sudden rule change cost them a major opportunity and left them watching from the sidelines as others entered the market first. Even so, the experience didn’t stop Teucrium. By choosing a different route and focusing on XRP, Gilbertie and his team found a new way to stand out.