Bloomberg ETF analysts Eric Balchunas and James Seyffart have announced that REX-Osprey is set to launch its XRP and Dogecoin exchange-traded funds (ETFs) this Thursday, marking a significant milestone as these will be the first regulated U.S. investment vehicles providing direct exposure to these popular cryptocurrencies. The XRP ETF will trade under the ticker $XRPR, while the Dogecoin fund will be identified as $DOJE. This development utilizes a faster 40 Act structure, allowing REX-Osprey to circumvent the traditional SEC approval delays that typically hinder such ETF launches.
REX-Osprey confirmed the XRP ETF’s imminent launch via social media, establishing $XRPR as the first U.S. fund to offer spot exposure to the third-largest cryptocurrency by market capitalization. The effective prospectus for the launch includes provisions for other notable products, including proposed Trump and Bonk token ETFs, although no launch dates for those have yet been released.
As the cryptocurrency landscape evolves, 92 crypto ETF applications are currently awaiting SEC review, with many heading toward October deadlines, specifically targeting products for Solana, XRP, and Litecoin. The REX-Osprey strategy takes advantage of the Investment Company Act of 1940, which allows for quicker market entry by avoiding the extensive requirements of the Form S-1 and 19b-4 filings faced by traditional spot crypto ETFs. Analysts, including ETF Store President Nate Geraci, have characterized this approach as a “regulatory end-around,” eliminating the typical delays associated with SEC approvals.
This quicker pathway was previously demonstrated with the successful launch of REX’s Solana staking ETF earlier this year. While REX secured its approval, seven major asset managers, including Grayscale and Bitwise, submitted updated amendments concerning XRP ETFs in late August. Bloomberg analysts described the coordinated efforts as highly notable, suggesting that they bode well for future approval prospects. Adjustments to the fund structures now allow for the creation of XRP or cash alongside both cash and in-kind redemptions, enhancing the flexibility of these products.
Despite this surge of activity from competitors, BlackRock did not enter the XRP race even after launching the first spot Bitcoin and Ethereum ETFs. REX-Osprey also expanded its product line by filing for BNB staking ETFs and MOVE token exposure earlier this year, positioning itself as a leader in the pursuit of unique assets beyond the conventional Bitcoin and Ethereum offerings.
In parallel, Grayscale has been working on converting its trusts into ETFs for assets like Litecoin, Solana, Dogecoin, XRP, and Avalanche, while also maintaining separate applications for Ethereum staking products. Notably, the firm recently announced a planned Dogecoin ETF, designated with the ticker “GDOG,” intended for listing on NYSE Arca.
As institutional interest in cryptocurrencies continues to surge, recent SEC decisions have forced delayed rulings on various ETFs, including those from Franklin Templeton and BlackRock. These delays have added complexity to timelines surrounding institutional adoption, with the SEC leveraging 60-day extensions for its decisions. Analysts note that this slowdown is in part due to the SEC’s coordination with proposed generic listing standards from Cboe and NYSE, which could potentially streamline the approval process for crypto ETFs.
Current regulations require individual rule changes for each application, extending the review process to 240 days. However, analysts expect that the anticipated approval of these streamlined procedures could lead to a significant influx of ETFs in the coming months.
As of mid-September, institutional demand appears robust, with Bitcoin ETFs recording $260 million in net inflows over a six-day period, while Ethereum products saw $360 million in inflows. BlackRock led the influx into Ethereum funds with $45.4 million, highlighting the asset manager’s commitment to integrating staking functionality into its offerings.
Prediction markets reflect growing confidence in the approval of XRP ETFs, assigning a 96% approval probability, a marked increase from 64% in August, as institutional stakeholders await greater regulatory clarity following the SEC’s conclusion of the Ripple lawsuit. Similarly, Dogecoin ETFs are also experiencing increased approval odds, rising dramatically from 44% in June to 96% now, despite the token’s origins as a meme coin.
