REX Shares, a US-based provider of exchange-traded funds (ETFs), has confirmed that the REX-Osprey XRP ETF (XRPR) will go live this week.
The product, which will be launched in collaboration with the Osprey Funds this week, will be the first US product to provide US investors with "spot exposure," according to a Monday announcement.
A spot ETF with a twist
Some market observers were probably puzzled by the announcement, given that spot Bitcoin ETFs are yet to be greenlit by the U.S. Securities and Exchange Commission.
However, the REX-Osprey XRP ETF is not your typical spot ETF because of its structure. Instead of directly holding the Ripple-linked token, the product is meant to operate like a "40 Act" fund. On top of XRP, it will also hold other assets such as cash, derivatives, and Treasuries.
The approval process for such products is dramatically different since they do not have to be explicitly greenlit by the SEC. They become effective after 75 days unless the agency blocks their launch.
Existing XRP ETFs
Currently, there are already several spot XRP ETFs that offer leveraged exposure to the prominent token. These include the Teucrium 2x Long Daily XRP ETF and the Volatility Shares Trust XRP ETF (XRPI).
Hence, the REX-Osprey XRP ETF will indeed stand out as the only spot-style product.
However, there are several pending spot ETFs that are highly expected to be approved in the near future.
As reported by U.Today, the SEC recently delayed its decision on Franklin Templeton's XRP ETF to Nov. 14.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team