REX-Osprey Set to Launch Dogecoin and XRP ETFs This Week

By: Isha Das

The crypto market is witnessing a notable development as REX-Osprey prepares to launch its anticipated Dogecoin (DOJE) and XRP (XRPR) Exchange-Traded Funds (ETFs) on September 18. This move is considered a significant stride in expanding the ETF market, offering direct exposure to these popular altcoins. Bloomberg's senior ETF analyst Eric Balchunas confirmed the information, marking a pivotal step for REX Shares, the entity facilitating these launches. This development is poised to resonate with many traders and investors, as it diverges from the more mainstream focus on Bitcoin and Ethereum ETFs.

REX-Osprey's offerings are based on a Registered Investment Company (RIC) structure, which is distinct from the conventional spot crypto ETFs and the structure previously used for their Solana ETF. James Seyffart, another Bloomberg ETF analyst, emphasized the operational flexibility this structure offers. The RIC framework allows the funds to hold spot crypto assets whilst retaining the ability to utilize derivatives and engage in ETF investments as needed. Unlike traditional corporate tax approaches utilized by Bitcoin and Ethereum spot ETFs, the RIC framework emphasizes regulatory compliance and distinct tax structures, impacting investor returns accordingly.

Previously, the Solana ETF launched by REX-Osprey employed a C-corporation structure before adapting to the RIC model, showcasing the firm's capacity to navigate regulatory landscapes. Despite initial delays, the launch of the Dogecoin ETF is back on track, exemplifying the adaptability of REX). As they broaden the scope of crypto ETFs, they add to the assortment approved by the Securities and Exchange Commission (SEC), which already includes five REX-Osprey ETFs. This expansion comes amidst a myriad of pending applications, over 90 as per Seyffart, awaiting the SEC’s ruling, expected to potentially favor some filings by October.

This unveiling of Dogecoin and XRP ETFs by REX-Osprey underscores a growing interest in broadening crypto asset exposure within mainstream investment vehicles. The SEC's recent delays in launching multi-asset funds from companies like Grayscale and Bitwise highlight the ongoing consideration of a streamlined approval process for crypto ETFs. Nevertheless, REX's expansion into altcoin ETFs like Dogecoin and XRP positions the firm as a precursor in diversifying crypto investment opportunities beyond the dominant players of Bitcoin and Ethereum.