This week, two new altcoin exchange-traded funds are set to launch in the United States, focusing on XRP and Dogecoin, as regulators become more open to crypto investment products.
The REX-Osprey XRP ETF is expected to debut this week, as the fund issuer announced on Monday. Trading under the ticker XRPR, it will become the first US ETF to offer investors direct exposure to the third-largest cryptocurrency by market capitalization.
REX and Osprey have successfully passed the Securities and Exchange Commission’s 75-day review window, with trading anticipated to commence on Friday, unless any unexpected delays arise, which are not expected.
This product is launching under the Investment Company Act of 1940, providing a more streamlined approval process compared to the Securities Act of 1933 used for spot Bitcoin ETFs.
In contrast to products that directly hold the underlying asset, this 1940 Act framework allows the fund to launch automatically 75 days post-filing unless the SEC interjects.
This will serve as “another good litmus test for ‘33 Act spot XRP ETF demand,” said Nate Geraci, President of Nova Dius, adding that futures-based XRP ETFs are approaching $1 billion in assets.
Dogecoin fund launch imminent
The XRP (XRP) fund is not the sole altcoin ETF set for launch this week.
“Currently, the Doge ETF DOJE is scheduled for a Thursday launch,” Bloomberg’s ETF analyst Eric Balchunas stated on Monday.
The REX-Osprey Dogecoin (DOGE) ETF has also received approval under the 1940 Act, which is typically utilized for mutual funds and diversified ETFs. It will become the first memecoin ETF in the United States.
In July, REX-Osprey launched the first Solana staking ETF (SSK). However, the fund has seen limited interest, with just $274 million in assets under management since its inception and under $25 million in inflows in the last five trading days, according to Farside Investors.
Additionally, REX-Osprey filed for a BNB (BNB) staking ETF in late August.
A plethora of altcoin ETFs in the pipeline
Meanwhile, over 90 crypto exchange-traded products await SEC approval as of the end of August, noted Bloomberg ETF analyst James Seyffart.
Related: SEC delays decisions on BlackRock, Franklin Templeton crypto ETFs
On Tuesday, he reported that Canary Capital has revised the prospectus for their Litecoin ETF, which is expected to be decided by the SEC in the first week of October.
Bitwise has also submitted a prospectus for a spot Avalanche (AVAX) ETF on Monday. The other two issuers with active filings for an Avalanche ETF are VanEck and Grayscale, according to Seyffart.
However, the SEC has postponed its decisions regarding Bitwise’s proposed Dogecoin ETF and Grayscale’s Hedera ETF, setting a new deadline of November 12.
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