Rex Shares and Osprey Funds are set to launch the first US XRP ETF this week, marking a milestone for altcoin investment products. The fund, called XRPR, is structured under the Investment Company Act of 1940, giving it a unique regulatory foundation compared to other crypto ETFs. Its debut comes as the SEC grows more open to crypto funds, signaling broader opportunities for altcoin-based ETFs in the market.

Rex Shares and Osprey Funds are preparing to launch the REX-Osprey XRP ETF (XRPR) this week, making it the first of its kind in the US. Unlike previous XRP ETF attempts, XRPR is registered under the Investment Company Act of 1940. This framework provides stronger investor protections by regulating funds that pool capital to pursue a shared strategy.

The ETF will hold XRP directly while allocating at least 40% of assets to shares of other XRP-related ETFs, according to its prospectus. This hybrid design combines crypto exposure with regulated fund structures, positioning XRPR differently from typical spot products.

Following the SOL Model and Expanding to DOGE

XRPR follows a similar structure to the REX-Osprey Solana Staking ETF, which launched in June. The approach signals REX-Osprey’s effort to adapt to US regulations and find legal pathways where other ETF proposals have stalled.

The firm is also preparing a Dogecoin ETF, originally expected to debut last Friday, but the launch has been delayed with the possibility of a Thursday debut, Bloomberg Senior ETF Analyst Eric Balchunas indiqué sur X.

Adapting Structures and Navigating SEC Delays

Rex Shares initially launched its Solana ETF (SSK) as a C-corporation before converting to a new model, showing a willingness to adjust strategies to fit regulatory demands.

At the same time, Bloomberg’s Eric Balchunas noted that several other XRP ETF filings are still pending SEC decisions, and may take up to two months to receive feedback from the regulator. The first batch of approvals could come as early as October, though the regulator may delay launches until its broader ETF framework is finalized. For now, REX-Osprey’s products expand the market by offering exposure to altcoins beyond Bitcoin et Ethereum.

Regulatory Shift Opens the Door for Crypto ETFs

The broader regulatory backdrop has become more favorable to crypto ETFs. In July, the SEC voted to allow in-kind creations and redemptions for crypto funds and approved applications to list and trade spot Bitcoin et Ethereum ETFs. These steps mark a clear departure from years of hesitation.

During the Biden administration, the SEC’s stance shifted after a pivotal court ruling in favor of Grayscale, leading to the approval of both spot Bitcoin and Ethereum ETFs. REX-Osprey is now positioning itself to benefit from this more open environment with its expanding suite of altcoin ETFs.