US’s First XRP ETF Set to Launch This Week - Here’s What You Need to Know

Wall Street's crypto embrace accelerates as the first XRP ETF prepares for trading debut.

The regulatory green light signals growing institutional acceptance of digital assets beyond Bitcoin and Ethereum.

Market makers are positioning for what could be the most explosive ETF launch since the crypto winter thawed.

Traditional finance finally catches up—just in time to take credit for the innovation they spent years fighting.

A New XRP ETF?

The crypto community has been very eager for an XRP ETF for several months, but there hasn’t been much progress despite repeated efforts. There are a few rumors that such a product may hit US markets soon, but REX-Osprey made a bold claim that one is almost ready:

The REX-Osprey™ XRP ETF, $XRPR, is coming this week!$XRPR will be the first U.S. ETF to deliver investors spot exposure to the third largest cryptocurrency by market cap, $XRP.

From REX-Osprey™, the team behind $SSK.@OspreyFunds

View Fund Prospectus:… pic.twitter.com/qMdKhfBZ0e

So, is this product the US’ first XRP ETF? How WOULD it compare to analogous products, such as BlackRock’s IBIT BTC ETF? According to REX Shares’ and Osprey Funds’ SEC filings, there are a few key points of interest. These two firms made several ETF applications which share a similar structure.

Important Differences

For one, this XRPR ETF doesn’t derive its sole value from the spot price of XRP. The filing claims that up to 25% of the fund’s total assets will consist of XRP investments, while the rest may consist of assets like US Treasury bonds, money market funds, cash and cash equivalents, etc. It may even invest in other crypto ETFs.

Furthermore, this XRP ETF is one of several filings under the 40 Act instead of the 33 Act. This implies that the product will have a meaningfully different structure from other common spot crypto ETFs.

When the SEC first approved the Bitcoin spot ETF, Gensler noted that there was a preexisting market for BTC futures products. XRP, unfortunately, does not have a corresponding market, which may be why the SEC hasn’t treated this new ETF with a similar gravitas.

A Huge Opportunity

Still, even if XRPR might not fit everyone’s definition of a spot XRP ETF, it won’t be alone. REX-Osprey filed for several products, but the dogecoin ETF might also hit markets soon. It faced a few unspecified setbacks last week, but everything is reportedly in order for a Thursday launch:

As of now, the Doge ETF $DOJE is slated for Thursday launch, as is a 40 Act spot XRP ETF $XRPR (which was in the same prospectus that went effective, TRUMP and Bonk also in there too, but no word on launch date for those yet) https://t.co/q20takMsAe

Balchunas further claimed that several 33 Act Dogecoin ETFs might win SEC approval in the next two months. Regardless of the fine print, investors should keep an eye on these developments.

REX-Osprey’s new product could provide a lot of clues about a future XRP ETF’s market impact. Hopefully, its success will encourage regulators and issuers alike to keep up the fight to win full-throated approval.