Big News for XRP A New Investment Fund is Coming
A company called REX Shares is getting ready to launch what it calls the first U.S. "spot" ETF for XRP, the cryptocurrency tied to Ripple. This is a big deal because it makes it easier for regular investors to get exposure to XRP without having to buy and store the actual crypto themselves.
What's an ETF, and What Makes This One Different?
An ETF or Exchange Traded Fund is like a basket of assets you can buy and sell on a stock exchange. In this case, the ETF (ticker symbol: XRPR) is designed to give investors access to the price movements of XRP.
However a financial analyst from Bloomberg pointed out that this isn't a "pure spot" ETF. A pure spot ETF holds the actual cryptocurrency. This new REX-Osprey fund will get its exposure to XRP by investing in things like swaps and other financial products that are based on XRP's price. The fund will also invest in other major crypto ETFs, like those for Bitcoin and Ethereum.
This approach is different from other proposed crypto ETFs that are still waiting for approval from the SEC. Because this one uses a different legal structure, REX Shares was able to get it approved more quickly.
When Will It Launch?
REX Shares hasn't given an exact date, but a Bloomberg analyst believes it could launch as soon as this Thursday. The company also plans to launch a Dogecoin ETF at the same time.
REX Shares and its partner, Osprey Funds, have a history of being the first to bring new crypto investment products to the U.S. market including a Solana staking ETF launched earlier this year.
