Regulatory Structure and Fund Design
REX-Osprey, a collaboration between REX Shares and Osprey Funds, launched the first U.S.-listed spot ETFs for XRP (ticker: XRPR) and Dogecoin (ticker: DOJE) on September 18, 2025, trading on the Cboe BZX Exchange. The funds were structured under the Investment Company Act of 1940, a strategic move that streamlined regulatory approval compared to the stricter Securities Act of 1933 used for earlier crypto ETFs. This approach allowed REX-Osprey to bypass prolonged SEC delays and accelerate institutional access to altcoins.
XRPR primarily holds physical XRP, supplemented by shares in international XRP ETFs to enhance liquidity and exposure. DOJE, meanwhile, offers direct spot exposure to Dogecoin but utilizes a Cayman Islands-based subsidiary for derivatives-based access, ensuring compliance with U.S. regulations. This hybrid model balances direct asset holdings with operational flexibility, though it stops short of being a “pure” spot ETF. The funds build on REX-Osprey’s earlier success with its Solana Staking ETF (SSK), which amassed $275 million in assets under management.
Market Impact and Derivatives Expansion
The launch marks a pivotal moment for altcoin adoption, providing institutional investors and treasuries with a regulated pathway to assets previously accessible mainly through crypto exchanges. XRP’s market cap of $167 billion and Dogecoin’s robust retail community underscore the potential for significant capital inflows. Bloomberg analysts had projected a 95% approval probability for such ETFs by October 2025, reflecting strong market anticipation.
Competition is intensifying, with firms like Grayscale and Franklin Templeton also seeking approval for XRP and Solana ETFs under the 1933 Act, though their applications face delays. Alongside spot ETFs, the derivatives landscape is expanding: ProShares launched leveraged ETFs (SLON and UXRP) offering 2x daily returns on Solana and XRP , while CME Group plans to list options on XRP and Solana futures on October 13, 2025, pending regulatory review. These developments will provide traders with advanced hedging and speculation tools, further integrating altcoins into traditional finance.
Risks and Considerations
Despite the regulatory milestone, risks remain pronounced. REX-Osprey’s prospectus highlights volatility, regulatory uncertainty, and market manipulation as key concerns. XRP’s centralized supply Ripple Labs controls ~40% of tokens raises additional governance and liquidity questions. For institutional investors, ETFs simplify custody and compliance but necessitate active risk management due to potential price swings and evolving regulatory landscapes.
The success of XRPR and DOJE will depend on sustained institutional demand, regulatory clarity, and broader market conditions. As the altcoin ETF ecosystem grows, these products will test the balance between innovation and investor protection, shaping the future of digital asset accessibility.
In summary, REX-Osprey’s ETF launch democratizes altcoin exposure for U.S. investors but underscores the need for vigilance in a rapidly evolving market. The coming months will critical, with derivatives expansions and competing filings poised to influence liquidity and adoption.
