The first spot XRP exchange-traded fund (ETF) is set to debut this week, giving U.S. investors regulated access to one of the most widely traded digital assets.
Issued by REX Shares and trading under the ticker XRPR, the product is registered under the Investment Company Act of 1940, a framework typically used for traditional investment funds.
This puts the fund in sharp contrast with spot Bitcoin (BTC) and Ethereum (ETH) ETFs, which operate as commodity trusts under the Securities Act of 1933.
A new wave of crypto ETFs
The debut of the first spot XRP ETF represents a significant step forward, as it highlights growing institutional and retail interest in more diverse digital investments.
Nate Geraci, president of NovaDius Wealth Management, describes the launch as “a good litmus test” for investor interest in new altcoin products, noting that futures-based XRP ETFs have already surpassed $1 billion in assets under management.
Considering that several major players have also filed for XRP ETFs, including Bitwise and Franklin Templeton, Geraci’s hopes for a benchmark might very well come true.
At the same time, Bloomberg analyst James Seyffard noted that this isn’t a ‘pure’ spot product, but that it will rather ‘hold spot directly,’ adding that the filing documents are worded in a way that would ‘allow derivatives usage for exposure if needed.’
As of now, it is clear that XRPR will ‘invest at least 80% of its net assets’ in XRP, the rest being allocated to ‘U.S. Treasuries, other U.S. government obligations, money market funds, cash and cash-like equivalents’, as per the SEC filing.
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Source: https://finbold.com/first-spot-xrp-etf-to-debut-this-week-heres-all-you-need-to-know/
