XRP Holders Alert: REX-Osprey’s 40s Act Loophole May Bring Big Capital

TLDR

• Ripple Van Winkle claims REX-Osprey has discovered a faster ETF approval route for digital assets like XRP.
• REX-Osprey’s strategy uses the Investment Company Act of 1940 to bypass typical SEC delays.
• XRP holders may see increased institutional investment due to faster ETF approvals.
• ETFs provide a regulated framework that can attract large institutional capital into XRP.
• The new filing could accelerate the market’s access to digital assets, benefiting XRP holders.

Crypto commentator Ripple Van Winkle recently posted on X, claiming that REX-Osprey has found a way to bypass delays in the exchange-traded fund (ETF) approval process. He described this strategy as a “regulatory side door,” utilizing the Investment Company Act of 1940. Van Winkle believes that this loophole could fast-track digital asset ETFs, including those tied to XRP, bringing institutional capital into the market sooner than expected.

XRP Holders Could See Faster ETF Approval

According to Van Winkle, the traditional ETF approval process is slow and cumbersome, likening it to waiting at the DMV. However, REX-Osprey has reportedly discovered a faster way by using the “40s Act loophole,” allowing them to bypass typical delays. This new approach could have significant implications for XRP holders, as it may lead to quicker ETF launches, which could drive institutional investments in XRP.

Van Winkle emphasized the importance of ETFs for institutional capital. He pointed out that retirement accounts, pension funds, and hedge funds typically invest through ETFs due to their regulated nature. If the “40s Act loophole” works as he suggests, XRP holders may see a surge in institutional interest and, consequently, higher demand for XRP.

The potential for increased institutional access to XRP could reshape market dynamics. Van Winkle believes that this quicker access could “accelerate broader access to digital assets such as XRP.” If other companies follow REX-Osprey’s path, XRP holders might witness an influx of capital into the market sooner than anticipated, significantly impacting XRP’s price and liquidity.

SEC May Gradually Approve XRP ETFs Faster

Van Winkle further explained that ETFs are crucial for institutional involvement in the cryptocurrency market. He noted that the SEC has taken years to approve crypto-based ETFs, which has led to frustration among investors. With REX-Osprey’s filing under the 1940 Act, XRP holders could expect faster approvals, opening doors for institutional investors to gain exposure to XRP.

The significance of the 1940 Act filing lies in its potential to bypass the SEC’s traditional approval timeline. XRP holders could see the approval process accelerate, offering them quicker access to institutional capital. As more entities adopt this approach, the market may experience a shift, allowing XRP to reach new levels of institutional participation.

Van Winkle’s conclusion left many wondering whether this move is a “genius” strategy or a “dangerous act.” He raised the possibility that the SEC might use this approach as a gradual, controlled way to introduce crypto ETFs. XRP holders should consider the long-term impact of these developments, as they could change the landscape of digital asset investments, especially for XRP.

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