Investors are poised to gain exposure to two significant cryptocurrency assets—XRP and Dogecoin (DOGE)—with new exchange-traded funds (ETFs) set to debut this week. The financial institutions Rex Shares and Osprey Funds are launching these products, which are registered under the Investment Company Act of 1940. This regulatory framework traditionally governs mutual funds and ETFs, allowing these new products to enter the market alongside other crypto ETFs that utilize the Securities Act of 1933 for registration.
The market debut for both ETFs is anticipated on Thursday. Greg King, the founder and CEO of REX Financial, emphasized the importance of ETFs as vehicles for trading and access. He stated, “The digital asset revolution is already underway, and to be able to offer exposure to spot XRP and other crypto returns within the protections of the US ’40 Act ETF regime is something Rex-Osprey is proud of and has worked diligently to achieve.”
The new XRP-focused fund, known as the “REX-Osprey™ XRP (Cayman) Portfolio S.P.,” is structured to gain exposure to spot XRP through a subsidiary located in the Cayman Islands, which remains wholly-owned and controlled by the fund. Additionally, the fund may invest in derivatives related to XRP to further enhance exposure for investors. A similar approach is outlined for the Dogecoin-focused ETF, referred to as DOJE.
Unlike existing spot Bitcoin and Ethereum ETFs that hold reserves of the underlying assets directly, these new funds will not provide “pure” spot exposure. While they will directly hold some spot assets, they will primarily leverage investments through their Cayman Islands subsidiary. The prospectus does contain provisions for derivatives usage, although this is not intended to be the main method of providing exposure.
Rex-Osprey has previously utilized the Investment Company Act of 1940 for its Solana staking ETF, which premiered in June and marked a pioneering move in the market. The firm has also filed for ETFs tied to Donald Trump’s official Solana meme coin and the Solana token BONK, though concrete launch dates for these products have yet to be determined.
Amid this burgeoning landscape, over 90 other ETF applications featuring assets like XRP and Solana remain pending approval by the SEC, with some decisions anticipated in October. Analysts suggest that approvals for Dogecoin, Solana, and XRP ETFs are nearing certainty, further underscoring the increasing acceptance of cryptocurrency investments in traditional financial frameworks.
