In a significant development within the cryptocurrency landscape, Rex Shares and Osprey Funds are gearing up to launch the first ‘spot’ exchange-traded fund (ETF) in the U.S. linked to Ripple’s native token, XRP. The announcement was made recently, though the exact launch date remains undisclosed. This ETF, designated as the REX-Osprey XRP ETF and trading under the ticker symbol XRPR, is notable for being registered under the Investment Company Act of 1940, which imposes rigorous governance and transparency standards to ensure investor protection.
XRP is currently the third largest cryptocurrency by market capitalization, though it experienced a slight decline of 1.4% in price over the past 24 hours. Retail sentiment regarding XRP has been characterized as neutral on platforms like Stocktwits, suggesting a cautious approach from investors.
The XRPR ETF is set to hold XRP directly while allocating at least 40% of its assets into shares of other ETFs that also possess exposure to the token. This approach diverges from existing XRP ETFs that have provided leveraged exposure via derivatives, such as the Teucrium 2x Long Daily XRP ETF (XXRP) and the Volatility Shares Trust XRP ETF (XRPI), which do not offer direct ‘spot’ exposure to XRP.
The registration of XRPR under the Investment Company Act of 1940 sets it apart from previous attempts by other firms to introduce XRP-related ETFs. This legal framework allows the fund to invest in various assets including cash, derivatives, and government securities, thereby enhancing its stability and offering a layer of security to investors.
In a broader context, this launch follows Rex Osprey’s previous efforts in the ETF market, such as the REX Osprey Solana Staking ETF (SSK), which debuted in June. Eric Balchunas, a senior analyst at Bloomberg Intelligence, has also indicated that the firm is poised to introduce a Dogecoin ETF (DOJE) shortly, with that launch expected to occur on Thursday.
As the cryptocurrency market continues to evolve, the introduction of the XRPR ETF is likely to attract considerable attention from investors looking for regulated exposure to one of the industry’s leading tokens.
