The First-Ever XRP ETF May be Days Away. Here’s the 1 Crucial Thing Every Investor Must Know
XRP ETF approval imminent—market braces for seismic shift
The regulatory green light
After years of regulatory limbo, the SEC's unexpected pivot signals a watershed moment for crypto adoption. This isn't just another fund launch—it's institutional validation for the entire asset class
Liquidity meets legacy
Traditional finance finally gets direct XRP exposure without the wallet headaches. Pension funds, wealth managers, and that uncle who still thinks blockchain is something from Terminator can now ride the wave
The fine print paradox
While Wall Street celebrates another fee-generating product, remember: you're paying for convenience instead of holding actual digital assets. Because why own the keys when you can pay someone 0.75% annually to do it for you?
Market impact projections
Early estimates suggest billions in institutional inflows could follow—potentially dwarfing current retail trading volumes. The real question isn't if money will flood in, but how quickly the traditional finance machine will try to tame crypto's wild nature
Image source: Getty Images.
A crypto ETF, but not as we know it
As with many things in the crypto world,(BTC) and(ETH) have led the way on the ETF front. The first spot Bitcoin ETF was approved in January 2024, followed by spot ethereum ETFs in July. According to CoinGlass, there's now almost $180 billion in Bitcoin and Ethereum ETFs.
Due to uncertainty over how individual cryptocurrencies are classified, many of those spot ETFs are structured as Exchange-Traded Products (ETPs) under the 1933 Securities Act. The process can take up to 240 days, as the SEC reviews each one individually.
Rex Shares and Osprey Funds found a way to shortcut the process. Their proposed ETFs are regulated investment companies under the 1940 Investment Act. They are hybrid funds that will be managed via a Cayman Islands subsidiary. Approval can take 75 days.
For investors, the structure can impact fees, taxes, and what investments are held. For example, XRPR WOULD charge a 0.75% management fee. For comparison, the(IBIT -0.98%) charges just 0.25%. According to its filing documents, XRPR would hold 20% in cash and cash alternatives. Another 40% of the holdings would be in other XRP ETFs -- including some in other countries and potentially also non-spot ETFs.
There are other XRP ETFs in the pipeline
According to The Block, there are seven spot XRP ETFs awaiting SEC approval. With decisions due in October or November, it may make sense to wait.That would give investors the chance to compare fees, dig into what each ETF offers, and pick the right one for their portfolio.
