First US XRP ETF Could Be Launched This Week

After months of waiting, the United States may soon see its first XRP ETF. Reports indicate that REX Shares and Osprey Funds are preparing to launch it this week. Approval of this ETF marks an important milestone for the adoption of digital assets within traditional financial markets.

This development comes as REX-Osprey also moves forward with plans for a Dogecoin ETF. Both funds have received approval under the 1940 Act, a regulatory route that avoids some of the challenges commonly faced by spot crypto ETFs.

A Long-Awaited XRP ETF

The crypto community has awaited a US XRP ETF for months, yet repeated attempts have achieved limited progress. Unlike BTC, which benefits from an established futures market that helped pave the way for its spot ETF, XRP has lacked a similar structure. This difference may account for the slower pace of regulatory approval.

REX Shares and Osprey Funds, however, have signaled that their ETF is nearly ready for launch. SEC filings indicate that the fund will not rely solely on XRP’s spot price. As much as 25% of the assets will be in XRP, and the rest will be invested in safer instruments like US Treasury bonds, money market funds, cash equivalents, or other crypto ETFs. This strategy provides XRP exposure while limiting risk, likely appealing to conservative institutional participants.

While this ETF is not exactly a spot XRP fund, it represents a significant step forward. Through a regulated investment pathway, REX-Osprey is supporting greater market participation and opening doors to more diversified strategies for all types of investors.

Key Differences from Traditional Crypto ETFs

Unlike most crypto ETFs that rely on the 33 Act, the forthcoming XRP ETF is structured under the 40 Act. Commonly used for mutual funds and diversified ETFs, the 40 Act supports more advanced portfolio strategies while ensuring adherence to SEC rules.

The fund blends XRP with cash, bonds, and other assets, offering protection against extreme crypto volatility, which may appeal to more cautious investors. By comparison, US-approved Bitcoin ETFs mainly rely on futures contracts or spot holdings, reflecting different market conditions.

The filing also suggests possible alignment with other products. REX-Osprey has filed similar ETFs for Dogecoin and staking-based assets such as Solana and BNB, indicating a strategic approach to altcoin exposure. This could be seen as a way to test regulatory response and market interest before launching more conventional XRP ETFs.

How ETFs Affect the Crypto Market

The first US XRP ETF may have a big impact on the crypto market. Even if it is not a pure spot ETF, its approval and trading could affect investor confidence, altcoin adoption, and regulatory clarity. The Dogecoin ETF is also important. Bloomberg analyst Eric Balchunas confirmed that REX-Osprey’s Dogecoin ETF (DOJE) could launch as soon as Thursday.

These ETFs could reveal how much interest investors have in altcoin-focused products. REX-Osprey has launched niche crypto funds before, such as the Solana staking ETF in July, though adoption was low. Regulatory approval sets a benchmark that could help future altcoin ETFs.

According to Bloomberg, over 90 crypto ETFs and related products are still awaiting SEC approval. If XRP and Dogecoin ETFs attract strong investment, more issuers may submit proposals. Market watchers will track trading, fund structure, and investor activity to understand the broader impact.

What To Expect Next?

If it launches as planned, REX-Osprey’s XRP ETF will be an important step for US crypto investing, offering a regulated way to invest in XRP. It may not satisfy everyone looking for a pure spot ETF, but it shows progress in bringing altcoins into mainstream finance.

Looking ahead, the performance of the XRP and Dogecoin ETFs could reveal how much interest there is in altcoin-focused products. Strong demand might lead to more ETF proposals and wider acceptance of crypto in regulated markets.