Two new altcoin exchange-traded funds are expected to launch in the United States this week, tracking XRP and Dogecoin, as regulators warm up to crypto investment products.ย
The REX-Osprey XRP ETF is coming this week, the fund issuer said on Monday.ย Trading under the ticker XRPR, it will be the first US ETF to deliver investors spot exposure to the third-largest cryptocurrency by market cap.
REX and Osprey have cleared the Securities and Exchange Commissionโs 75-day review window and are expected to begin trading on Friday, barring any further delays, which are not expected.
The product is set to launch under the Investment Company Act of 1940, which provides a simpler approval path than the Securities Act of 1933 used for spot Bitcoin ETFs.ย
Unlike products that directly hold the underlying asset, this 1940 Act structure allows the fund to launch automatically 75 days after filing unless the SEC objects.
This will be โanother good litmus test for โ33 Act spot XRP ETF demand,โ Nova Dius President Nate Geraci said, adding that futures-based XRP ETFs are already nearing $1 billion in assets.
Dogecoin fund launch imminentย
The XRP (XRP) fund is not the only altcoin ETF slated for launch this week.ย
โAs of now, the Doge ETF DOJE is slated for a Thursday launch,โ said Bloombergโs ETF expert Eric Balchunas on Monday.ย
REX-Osprey Dogecoin (DOGE) ETF also gained approval under the 1940 Act, a framework typically used for mutual funds and diversified ETFs. It will also be the first memecoin ETF in the United States.ย
REX-Osprey launched the first Solana staking ETF (SSK) in July. However, interest in the fund has been lackluster with just $274 million in assets under management since it launched, and less than $25 million in inflows over the past five trading days, according to Farside Investors.ย
In late August, REX-Osprey also filed for a BNB (BNB) staking ETF.ย
A slew of altcoin ETFs in the pipeline
Meanwhile, more than 90 crypto exchange-traded products are waiting for SEC approval as of the end of August, according to Bloomberg ETF analyst James Seyffart.
Related: SEC delays BlackRock, Franklin Templeton crypto ETF decisions
On Tuesday, he observed that Canary Capital had updated the prospectus filing for their Litecoin ETF, which is due for final decision by the SEC in the first week of October.
Bitwise also filed a prospectus for a spot Avalanche (AVAX) ETF on Monday. The only other two issuers with active filings for an Avalanche ETF are VanEck and Grayscale, said Seyffart.ย
However, the SEC delayed its decisions on Bitwiseโs proposed Dogecoin ETF and Grayscaleโs Hedera ETF, setting a new deadline of Nov. 12.
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