Why Rex-Osprey’s XRPR ETF Launch Could Be A Bigger Deal Than Spot XRP ETF
Highlights
- Rex Osprey XRP ETF will have exposure to XRP, alongside cash, Treasuries, and derivatives.
- Rex-Osprey leveraged the ‘40 Act structure to bring this ETF to the market, under the regulatory purview.
- The U.S. SEC is currently reviewing 11 spot XRP ETF applications, with final rulings expected between October 18–25.
The Rex-Osprey XRPR spot Ripple ETF is scheduled to launch this week. According to crypto expert Eleanor Terrett, the product carries greater regulatory oversight than traditional spot ETFs, making its debut a potentially more significant milestone for the market. She added that the development could set the stage for the SEC to approve spot XRP ETFs as early as October.
What Makes the Rex-Osprey XRP ETF Special?
XRPR, will be the first spot ETF from Rex Osprey in the US, tracking the Ripple cryptocurrency. This is a milestone achievement for the Ripple community and would set the stage for more spot ETF approvals. While several top issuers like Bitwise, Canary Capital, Grayscale, 21Shares, and others are waiting on the sidelines, how did Rex-Osprey make it through the U.S. Securities and Exchange Commission (SEC)?
Crypto expert Eleanor Terret reported that the REX-Osprey XRPR ETF functions as a spot ETF under a ’40 Act wrapper, holding real XRP alongside cash, U.S. Treasuries, and certain derivatives. This fund will allocate roughly 80% of its holdings to XRP itself.
Eleanor noted that the structure makes it effectively a spot ETF with additional features. Thus, in comparison to traditional products, the XRPR ETF brings along stricter regulatory oversight. As the XRP ETF from Rex-Osprey offers better regulatory oversight, the SEC seems to be more comfortable with giving it a go-ahead.
Since the spot XRP ETF from other issuers provides a complete exposure to the Ripple cryptocurrency, it has been subject to multiple delays in the past. Speaking on the development, Nova Dius Wealth President Nate Geraci stated:
“First ETF offering spot xrp exposure set to launch this week… REX-Osprey using clever regulatory end-around via ‘40 Act structure to bring this to market. Will be another good litmus test for ‘33 Act spot xrp ETF demand. Futures-based xrp ETFs already nearing $1bil in assets”.
US SEC To Take Call on 11 Spot ETF Applications in October
The US SEC is actively reviewing a total of 11 spot XRP ETFs, which would directly hold XRP tokens. Thus, it distinguishes them from derivatives-based or leveraged cryptocurrency products that currently exist in the market.
According to regulatory timelines, the SEC is expected to announce final decisions on these applications between October 18 and October 25, 2025. The review process has already been extended multiple times and included public comment periods. Besides, the SEC approval could lead to massive institutional inflows into the XRP product.
The XRP price has yet to catch up with the enthusiasm surrounding the ETF launch. Despite optimism surrounding the ETF launch, XRP whales dumped a massive 40 million coins in the market. The broader crypto market remains jittery ahead of the September 17 FOMC meeting, despite the strong expectations of Fed rate cuts ahead.
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