XRP and Dogecoin ETFs Launching in the US This Week

Exciting news for crypto enthusiasts! This week marks a significant step for XRP and Dogecoin as ETFs are set to launch in the United States. Traditional investors will soon have a new avenue to gain exposure to these popular cryptocurrencies through exchange-traded products offered by Rex Shares and Osprey Funds.

Innovative Regulatory Approach

These ETFs stand out due to their registration under the Investment Company Act of 1940, differentiating them from existing spot Bitcoin and Ethereum ETFs registered under the Securities Act of 1933 as commodity trusts. This approach allows the firms to list their crypto ETFs.

Investment Structure

The Rex-Osprey ETFs will gain exposure to XRP and Dogecoin through a unique structure involving a Cayman Islands subsidiary. Specifically, for XRP, the fund will utilize “REX-OspreyTM XRP (Cayman) Portfolio S.P.,” which is wholly-owned and controlled by the fund. A similar process will be implemented for the Dogecoin ETF (DOJE).

Unlike spot Bitcoin and Ethereum ETFs, which are directly backed by reserves of the underlying assets, these XRP and Dogecoin ETFs invest via the Cayman Islands subsidiary.

More to Come

Rex-Osprey previously launched a Solana staking ETF using the same '40 Act. The company also has filings for ETFs linked to the TRUMP meme coin and BONK, though launch dates are not yet set. The SEC also has more than 90 other ETF applications for XRP and Solana.

Key Takeaways

• New Investment Opportunities: Traditional investors gain access to XRP and Dogecoin through ETFs.
• Unique Regulatory Path: The ETFs are registered under the Investment Company Act of 1940.
• Indirect Exposure: The ETFs gain exposure to the underlying crypto assets via a Cayman Islands subsidiary.