Dogecoin and XRP ETFs: A New Chapter in Crypto Investing
The crypto world is buzzing with news that two new exchange-traded funds (ETFs) are set to hit the market. The Dogecoin ETF, dubbed DOJE, and the XRP ETF, named XRPR, are both expected to start trading on September 18.
This news was confirmed by Eric Balchunas, a senior ETF analyst at Bloomberg, who also mentioned that other funds like TRUMP, BONK, and Bitcoin are still waiting for their official trading dates.
Unique Structure: Registered Investment Company (RIC)
These ETFs are unique because they use a structure called a registered investment company (RIC). This structure is different from what's used in traditional spot crypto ETFs.
James Seyffart, another Bloomberg ETF analyst, explained that the RIC framework gives these funds more flexibility in how they operate while still meeting regulatory requirements. This means they can hold spot crypto assets primarily but also have the option to use derivatives and other ETF investments when needed.
REX-Osprey's Experience with Crypto ETFs
This isn't the first time REX-Osprey has launched a crypto ETF. They previously introduced a Solana ETF (SSK) using a different structure before switching to the RIC framework. This shows that the team is willing to adapt to different regulatory approaches.
The Dogecoin ETF had a slight delay from its originally expected debut on September 12, but Balchunas predicted it would launch mid-week. These new funds are joining a growing list of crypto ETFs that have been approved by the Securities and Exchange Commission (SEC), despite their unique structures.
Over 90 Crypto ETF Applications Awaiting SEC Decision
There are over 90 other crypto ETF applications waiting for the SEC's decision. Seyffart noted that the first batch of approvals might happen in October, as some of these filings face their final deadline next month. However, the SEC might delay the launch even after giving regulatory approval, as they recently did with multi-asset funds from Grayscale and Bitwise.
According to Bloomberg analysts, the SEC is finishing a framework to fast-track crypto ETF approvals and wants to allow their trading after its conclusion. For now, the REX-Osprey launches are expanding crypto ETF options beyond Bitcoin and Ethereum, offering exposure to other altcoins.