REX Shares and Osprey Funds have confirmed the launch of the REX-Osprey XRP ETF (ticker: XRPR) this week, marking the first US product offering spot exposure to XRP. Unlike traditional spot ETFs, this product operates under the Investment Company Act of 1940 (40 Act) rather than the Securities Act of 1933 (33 Act), which allows it to bypass explicit SEC approval and become effective after 75 days unless blocked.
The ETF will not directly hold XRP alone but will allocate up to 25% of its assets to XRP investments, with the remainder consisting of cash, US Treasury bonds, money market funds, derivatives, and other crypto ETFs. This structure differs significantly from pure spot ETFs like those for Bitcoin, which derive value solely from the underlying asset.
Existing XRP ETFs, such as the Teucrium 2x Long Daily XRP ETF and Volatility Shares Trust XRP ETF (XRPI), offer leveraged exposure, making XRPR the first spot-style product. However, several pending spot XRP ETFs, including Franklin Templeton's proposal (delayed to November 14), are still under SEC review. REX-Osprey also plans to launch a similar Dogecoin ETF (DOJE) soon, pending regulatory clarity.