REX-Osprey Files for XRP ETF: A New Avenue for Crypto Exposure?
REX-Osprey Enters the XRP ETF Arena
REX Shares and Osprey Funds are reportedly collaborating to introduce an XRP ETF. This potential product distinguishes itself from typical spot crypto ETFs through its unique structure.
The firms also have plans for a Dogecoin ETF, with launches potentially providing valuable market insights for future ETF products. These developments suggest increasing interest in diverse crypto investment vehicles.
What Makes This XRP ETF Different?
While the crypto community has anticipated an XRP ETF for some time, progress has been slow. REX-Osprey's filing offers a concrete step toward a potential offering.
Key Features of the Proposed XRPR ETF:
- Diversified Holdings: The ETF may allocate up to 25% of its assets to XRP investments.
- Broader Asset Allocation: The remaining assets could include US Treasury bonds, money market funds, cash equivalents, and even other crypto ETFs.
- 40 Act Filing: This filing falls under the 40 Act, indicating a different structure compared to standard 33 Act spot crypto ETFs.
This diversified approach contrasts with Bitcoin spot ETFs, which gained traction partly due to an existing BTC futures market – a market currently absent for XRP.
Dogecoin ETF Also in the Pipeline
REX-Osprey's ambitions extend beyond XRP. They also have a Dogecoin ETF in development. Despite some minor setbacks, the launch is reportedly imminent.
Eric Balchunas noted on X (formerly Twitter) that the Doge ETF ($DOJE) is slated for Thursday launch, as is a 40 Act spot XRP ETF ($XRPR).
Balchunas speculated on potential 33 Act Dogecoin ETF approvals in the coming months. Investors should closely monitor these developments for potential market impacts.
Implications for the XRP Market
The REX-Osprey XRP ETF, even with its unique structure, could provide valuable data on the market's response to such a product. This, in turn, could encourage regulators and issuers to pursue full approval for more conventional spot XRP ETFs. Codeum provides blockchain security audits to ensure the safety and integrity of cryptocurrency ETFs and related products.