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The U.S. crypto investment landscape is preparing for a major milestone as REX-Osprey moves closer to introducing the first exchange-traded fund (ETF) tied directly to XRP. Known as XRPR, this ETF will provide American investors with regulated exposure to one of the largest digital assets by market capitalization, signaling growing institutional interest in the crypto sector.
REX-Osprey Pushes Forward With XRP ETF Plans
On September 15, REX Shares confirmed on social media that the XRP-focused ETF is set to begin trading soon. The product, called the REX-Osprey XRP ETF (XRPR), is designed to mirror the performance of XRP before fees and expenses.
According to the company’s filing with the U.S. Securities and Exchange Commission (SEC), the fund may also use financial derivatives, such as futures and swaps, to gain exposure when necessary. While the emphasis remains on spot exposure to XRP, the structure provides flexibility to maintain performance in different market conditions.
This development follows a regulatory filing from January 21, 2025, when REX-Osprey submitted its registration statement under the Investment Company Act of 1940. This approach differs from most crypto ETF filings, which typically proceed under the Securities Exchange Act of 1933.
Why the Regulatory Path Matters
The decision to file under the 1940 Act represents a unique strategy. By taking this route, REX-Osprey is able to bring a regulated digital asset product to the U.S. market while avoiding some of the complexities tied to traditional 1933 Act filings.
Industry experts believe this approach could act as a bridge for wider regulatory approval in the future. The ETF structure ensures investor protections such as transparency, reporting standards, and custodial safeguards—factors often emphasized by regulators.
Nate Geraci, president of Novadius Wealth Management, highlighted the significance of this approach, describing it as a “clever regulatory end-around” that could test investor appetite for XRP exposure in the U.S.
Balancing Spot and Derivative Exposure
Although marketed as a spot XRP ETF, analysts have pointed out that the fund will also rely on a mix of direct XRP holdings and global spot ETFs to achieve its goals. Additionally, derivatives such as futures contracts may be included to maintain efficient exposure.
Bloomberg ETF analyst James Seyffart clarified that while XRPR is not a “pure” spot fund, the majority of its exposure will still come directly from XRP. He added that derivatives are available as a backup tool but will not be the primary method of exposure.
This hybrid approach may raise questions among purists, but it also demonstrates flexibility in ensuring that investors can access XRP within a regulated ETF framework.
Growing Institutional Demand for XRP
XRP, currently the third-largest cryptocurrency by market cap, has long been at the center of discussions about adoption and regulation. Its efficiency in cross-border payments and strong community of supporters make it a unique digital asset compared to peers like Bitcoin and Ethereum.
Institutional demand for XRP has been growing steadily. Futures-based XRP ETFs already manage nearly $1 billion in assets, highlighting interest among professional traders and investment firms. The new spot-focused ETF adds another avenue for exposure, potentially opening the door to wider participation from both retail and institutional investors.
Implications for U.S. Crypto ETFs
The introduction of XRPR represents more than just a new investment vehicle. It reflects the gradual acceptance of cryptocurrencies in regulated markets and the willingness of financial institutions to experiment with innovative structures.
If successful, XRPR could pave the way for additional digital asset ETFs in the United States. Other issuers may follow REX-Osprey’s strategy under the 1940 Act, or regulators may eventually become more open to 1933 Act filings that allow for pure spot products.
For investors, the ETF offers the benefits of regulated exposure without the technical challenges of self-custody. Buying XRP directly requires wallets, exchanges, and security practices that can be daunting for traditional investors. An ETF solves these issues by providing access through standard brokerage accounts.
Looking Ahead
The XRP ETF is arriving at a time when investor interest in digital assets is climbing once again. With Bitcoin ETFs already trading in the U.S. and Ethereum products under review, XRP’s inclusion further expands the range of crypto investment options.
While the structure is not entirely pure spot, market observers argue that the availability of regulated XRP exposure marks an important step forward. As REX-Osprey finalizes the rollout of XRPR, the U.S. crypto ETF market enters a new phase where diversity of products and investor choice will continue to expand.
For XRP, the development could reinforce its standing as a top-tier digital asset, not just for retail holders but also for institutional portfolios seeking diversification in a regulated environment.
