REX shares and Osprey Funds Launch First U.S. Spot ETFs for Dogecoin and XRP
TL;DR Breakdown
- REX Shares and Osprey Funds launched Dogecoin and XRP ETFs, both under the 40 Act.
- The funds hold DOGE or XRP with cash, Treasuries, and derivatives for the added regulation.
- New standards cleared by the SEC could help speed up dozens of crypto ETF launches in the U.S.
REX Shares and Osprey Funds have launched exchange-traded funds (ETFs) for Dogecoin and XRP, which are the first US funds to offer spot exposure to the two altcoins. The products, which are listed as DOJE and XRPR, add to the asset managers’ offerings outside of Solana, which previously had a staking ETF providing spot SOL exposure with rewards.
Unlike traditional spot crypto ETFs, which are registered under the 1933 Securities Act, the new funds are issued under the Investment Company Act of 1940. DOJE is the first Dogecoin ETF, with no futures-based alternatives available for the token. Bloomberg analyst Eric Balchunas noted the uniqueness of providing institutional access to an asset that is widely known for popularity, not utility.
XRPR, in turn, is one of the first regulated avenues for U.S. investors to gain institutional exposure to XRP. The issuers confirmed that the funds will not contain 100% spot DOGE or XRP but will contain other related ETFs, cash, Treasuries, and derivatives to offer diversified exposure. Eleanor Terrett of Fox Business called them “spot ETFs with extras” because of their broader asset mix and stricter regulatory environment.
Building on Previous ETF Success
The Dogecoin and XRP ETFs build on the previous launch of the REX-Osprey Solana Staking ETF, the first ETF to provide both spot SOL exposure and on-chain staking rewards. That fund already boasts over $275 million in assets under management, highlighting the demand for regulated digital asset products.
Greg King, CEO of REX Financial and Osprey Funds, referred to the new products as being part of the broader revolutions in digital assets. He emphasized that increasing access to popular cryptocurrencies by investors is a critical step for financial innovation in the United States.
Additionally, market analyst Nate Geraci has suggested that strong demand could follow, especially for XRP. His outlook comes from the traction of CME futures and futures-based crypto ETFs that opened up alternative assets to institutional investors.
SEC Approval Accelerates ETF Pathway
The timing of these launches coincides with recent regulations from the U.S. Securities and Exchange Commission (SEC). The agency has approved universal listing standards that streamline the approval process for the exchange-traded products based on commodities, including those holding crypto assets.
Under the new framework, exchanges such as Nasdaq, NYSE Arca, and Cboe BZX can expedite crypto ETF listings without going through approval for each application separately. SEC Chair Paul Atkins said the newly revised standards increase the investors’ choices, and strengthen America’s leadership in digital asset innovation.
“By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets.”
SEC Chairman Paul S. Atkins.
The generic listing standards provide much-needed regulatory clarity and certainty to the investment community, while providing investor protections. Bloomberg analysts Eric Balchunas and James Seyffart expect that over 100 crypto ETFs will be launched in the next year, with accelerated approvals favoring assets such as Solana, XRP, Litecoin, and Dogecoin. Current applications for Avalanche, Chainlink, Polkadot, and BNB are also awaiting decisions.
