Two new altcoin exchange-traded funds are set to launch in the United States this week, tracking XRP and Dogecoin, as regulators become more receptive to crypto investment products.
The REX-Osprey XRP ETF is debuting this week, as the fund issuer announced on Monday. Trading under the ticker XRPR, it will be the first US ETF providing investors spot exposure to the third-largest cryptocurrency by market capitalization.
REX and Osprey have successfully navigated the Securities and Exchange Commission’s 75-day review window and are expected to begin trading on Friday, barring any unforeseen delays, which seem unlikely.
The product will be launched under the Investment Company Act of 1940, which offers a more streamlined approval process compared to the Securities Act of 1933 used for spot Bitcoin ETFs.
Unlike products that directly possess the underlying asset, this 1940 Act structure permits the fund to launch automatically 75 days after filing unless the SEC raises any objections.
This will serve as “another important litmus test for the demand of ‘33 Act spot XRP ETFs,” said Nova Dius President Nate Geraci, who noted that futures-based XRP ETFs are already approaching $1 billion in assets.
Dogecoin fund launch imminent
The XRP (XRP) fund is not the only altcoin ETF poised for launch this week.
“Currently, the Doge ETF DOJE is expected to launch on Thursday,” remarked Bloomberg’s ETF expert Eric Balchunas on Monday.
The REX-Osprey Dogecoin (DOGE) ETF has also received approval under the 1940 Act, a framework predominantly used for mutual funds and diversified ETFs. It will mark the first memecoin ETF in the United States.
REX-Osprey launched the first Solana staking ETF (SSK) in July. However, interest in this fund has been muted, with only $274 million in assets under management since its inception, and less than $25 million in inflows over the last five trading days, according to Farside Investors.
In late August, REX-Osprey also submitted a filing for a BNB (BNB) staking ETF.
A slew of altcoin ETFs in the pipeline
Meanwhile, over 90 crypto exchange-traded products are pending SEC approval as of late August, according to Bloomberg ETF analyst James Seyffart.
Related: SEC delays decisions on BlackRock and Franklin Templeton crypto ETFs
On Tuesday, he noted that Canary Capital had updated the prospectus filing for their Litecoin ETF, which is slated for final decision by the SEC in the first week of October.
Bitwise also submitted a prospectus for a spot Avalanche (AVAX) ETF on Monday. The only other two issuers with active filings for an Avalanche ETF are VanEck and Grayscale, according to Seyffart.
However, the SEC postponed its decisions on Bitwise’s proposed Dogecoin ETF and Grayscale’s Hedera ETF, establishing a new deadline of November 12.
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