tl;dr
REX Shares and Osprey Funds are set to launch an XRP ETF (XRPR) with a hybrid structure, allocating 25% to XRP and 75% to traditional assets like U.S. Treasuries and crypto ETFs, diverging from typical spot ETF models. The ETF is filed under the 40 Act, requiring stricter reporting, unlike Bitcoin E...
**Breaking the Barrier: REX and Osprey’s XRP ETF Paves the Way for Crypto’s Next Chapter**
The cryptocurrency world has been buzzing with anticipation for an XRP ETF, and REX Shares and Osprey Funds might just be the ones to finally deliver. After months of speculation, the duo is reportedly set to launch a groundbreaking XRP ETF this week—a move that could redefine how investors access digital assets. But this isn’t your average crypto ETF. With a unique structure and a few key distinctions from its Bitcoin counterparts, this product could signal a new era for regulated crypto investing.
### A Different Kind of XRP ETF
While the market has long awaited a pure “spot” XRP ETF—where the fund’s value directly tracks the price of XRP—REX-Osprey’s offering takes a different approach. According to their SEC filings, the ETF (dubbed XRPR) won’t be entirely tied to XRP’s spot price. Instead, up to 25% of the fund’s assets will be allocated to XRP, with the remaining 75% invested in “traditional” assets like U.S. Treasury bonds, money market funds, and even other crypto ETFs. This hybrid model diverges from the typical spot ETF structure, which relies solely on the underlying asset’s price.
The ETF is also filed under the **40 Act**—a regulatory framework typically used for mutual funds—rather than the **33 Act**, which governs securities like Bitcoin ETFs. This distinction matters. The 40 Act requires more frequent reporting and stricter oversight, potentially offering investors a layer of security but also complicating the product’s appeal. For context, BlackRock’s IBIT Bitcoin ETF, which debuted in 2024, used the 33 Act, allowing it to bypass some of the 40 Act’s complexities.
### Why XRP’s Journey Is Different
The U.S. Securities and Exchange Commission (SEC) has been cautious about approving XRP ETFs, partly because the cryptocurrency lacks a well-established futures market. Unlike Bitcoin, which has a robust derivatives ecosystem, XRP’s trading volume and regulatory scrutiny have made it a tougher sell. The SEC’s previous skepticism toward XRP—stemming from ongoing litigation with Ripple—has further complicated matters.
REX-Osprey’s ETF, however, might sidestep some of these hurdles by diversifying its holdings. By blending XRP with traditional assets, the fund could appeal to risk-averse investors who want exposure to crypto without the volatility of a pure spot ETF. But critics argue this structure dilutes the product’s purpose, questioning whether it’s truly a “XRP ETF” at all.
### Dogecoin and the Road Ahead
While the XRP ETF steals the spotlight, REX-Osprey is also pushing forward with a **Dogecoin ETF**, albeit with a few hiccups. Last week’s delays—though unspecified—haven’t derailed the plan, with a Thursday launch reportedly in the works. Analysts like Brian Balchunas suggest that several Dogecoin ETFs under the 33 Act could gain SEC approval in the coming months, signaling growing institutional interest in meme coins.
### A Test Case for the Future
Even if the XRPR ETF isn’t a perfect fit for all investors, its launch could provide critical insights into how regulators and the market react to crypto ETFs. Will it attract retail and institutional buyers? How will it perform compared to Bitcoin ETFs? And more importantly, will its success pressure the SEC to greenlight more XRP-focused products?
For now, the crypto community is watching closely. If REX-Osprey’s ETF takes off, it could open the door for a wave of innovative, hybrid crypto products. But if it stumbles, the path to a true XRP ETF might remain as murky as ever.
As the launch date approaches, one thing is clear: the race to bring crypto into the mainstream isn’t just about Bitcoin anymore. XRP, Dogecoin, and others are pushing the boundaries, and the next chapter of financial innovation is being written—one ETF at a time.
*What do you think? Will this XRP ETF reshape the market, or will it be another crypto experiment?*