Introduction of the REX-Osprey XRP ETF
The forthcoming introduction of the REX-Osprey XRP ETF (XRPR) is poised to serve as a crucial indicator of investor appetite for this type of product, according to Nate Geraci, who leads NovaDius Wealth Management.
Market Context and Expectations
With existing futures-based ETFs linked to XRP already amassing over $1 billion in assets, this new offering is expected to generate significant interest. Set to go live this week, the ETF will provide direct exposure to XRP, which is associated with Ripple. However, it’s important to note that it is not an ordinary ‘33 Act spot ETF and does not require direct approval from the U.S. Securities and Exchange Commission.
Instead, it operates under the ’40 Act structure, directing its investments largely towards XRP—about 80% of its assets will be invested in the cryptocurrency or related assets, though the specifics of these accompaniments remain unspecified.
Mixed Anticipation for Spot XRP ETFs
Moreover, the anticipation surrounding demand for spot XRP ETFs remains mixed, particularly following a year of speculation. Notably, after Bitwise, a leading firm in crypto index funds, filed for an XRP ETF last October, several other major financial institutions, including Franklin Templeton, have shown interest in similar products.
While Geraci has expressed optimism that XRP ETFs may see unexpectedly robust inflows this year, the fact that major players like BlackRock and Fidelity have not yet expressed interest in XRP is a point of concern, especially as Fidelity recently pursued a spot ETF for Solana.
Conclusion
As the launch date approaches, all eyes will be on market responses to see if the demand for spot-based XRP investment vehicles lives up to expectations.
