The first exchange-traded funds (ETFs) that provide exposure to XRP and Dogecoin (DOGE) commenced trading in the United States on Thursday, marking a significant development in the cryptocurrency market. These products, offered by Rex Shares and Osprey Funds, are listed on the Cboe BZX exchange under the tickers DOJE and XRPR, respectively. This launch follows the earlier debut of the Rex-Osprey Solana ETF in July.
As of recent trading data, DOJE is priced at approximately $26.90, while XRPR is trading at about $25.73. However, it is important to note that DOJE will take a slightly different approach compared to other cryptocurrency ETFs. Instead of holding Dogecoin directly, it will utilize a subsidiary based in the Cayman Islands to gain exposure through futures and other derivative instruments. In contrast, XRPR is designed to hold XRP directly and will also invest in spot ETFs from outside the U.S. to secure its exposure.
According to Bloomberg Intelligence analyst James Seyffart, XRP is the native token of the XRP Ledger, a network that emphasizes financial institutional payments. Both XRP and Dogecoin rank prominently in the crypto marketplace, with XRP occupying the third-largest position and Dogecoin holding the eighth position, based on market capitalization metrics from CoinDesk.
The introduction of these spot crypto ETFs comes after a prolonged wait, with the U.S. Securities and Exchange Commission (SEC) having previously rejected multiple applications for years. The first approvals for spot Bitcoin ETFs were granted in January 2024, setting off a chain of subsequent approvals, including those for ETFs providing exposure to ether (ETH).
Investing in these ETFs allows individuals to gain exposure to cryptocurrencies without the complexities associated with direct ownership, such as storage and custody risks. This structure presents a practical and secure investment avenue, particularly appealing to institutional investors with substantial capital. The recent developments in ETF offerings signify a growing acceptance of cryptocurrencies in mainstream finance and could pave the way for further innovations in the market.
