Nate Geraci, president at NovaDius Wealth Management, claims that the upcoming launch of the REX-Osprey XRP ETF (XRPR) is going to be "a good litmus test" for the level of demand.
Geraci has noted that futures-based ETF products that track the price of the third-largest cryptocurrency have already topped $1 billion in assets.
First spot ETF?
As reported by U.Today, the novel product, which will offer spot exposure to the Ripple-affiliated token, will go live this week.
That said, it is not a traditional ‘33 Act spot ETF, and it does not require explicit approval from the U.S. Securities and Exchange Commission.
The fund, which will be operating under the '40 Act structure, will be primarily investing in XRP. Roughly 80% of the fund's assets will be allocated to the Ripple-linked token or other assets that provide exposure to the token. The fund does not specify the supplementary assets that will be included in the mix.
As reported by U.Today, REX Shares launched a similar product in collaboration with the Osprey Funds with on-chain staking for Solana (SOL).
Will there be demand?
As reported by U.Today, there is still a lot of uncertainty surrounding the level of demand that spot-based XRP ETFs could potentially attract after nearly a year of anticipation.
Bitwise, the leading crypto index fund manager, filed to launch an XRP ETF last October, and plenty of other issues, including prominent financial firm Franklin Templeton, have followed suit.
Geraci previously predicted that XRP ETFs could surprise market observers with higher-than-expected flows this year.
However, the fact that both BlackRock and Fidelity have ignored XRP might be a cause for concern (especially considering that the latter filed for a spot Solana ETF).
Dan Burgin
Vladislav Sopov
U.Today Editorial Team