Rex-Osprey XRP Spot ETF is about to be launched, a milestone in the industry that may pave the way for more products.

According to reports, the Ripple (XRP) Spot ETF under Rex-Osprey - XRPR will officially launch this week. Crypto Assets expert Eleanor Terret believes that the significance of this transaction may be greater than the direct launch of a Spot XRP ETF in the market. She explained that the XRPR ETF will be a tool subject to stricter regulation than traditional spot products. This milestone development could pave the way for the SEC to approve other Spot ETFs in October.

The Unique Features of Rex-Osprey XRP ETF

XRPR will be the first Spot ETF tracking XRP launched by Rex-Osprey in the United States. This is a milestone achievement for the XRP community and will lay the groundwork for the approval of more Spot ETFs. While top issuers like Bitwise, Canary Capital, Grayscale, and 21Shares are still watching from the sidelines, how did Rex-Osprey take the first step through the approval of the SEC?

Crypto Assets expert Eleanor Terret stated that Rex-Osprey's XRPR ETF operates as a Spot ETF under the 40 Act framework, holding not only real XRP but also cash, U.S. Treasury bonds, and certain derivatives. Approximately 80% of the fund's holdings will be allocated to XRP itself. Eleanor pointed out that this structure makes it a Spot ETF with additional features. Therefore, compared to traditional products, the XRPR ETF brings more stringent regulatory scrutiny. As Rex-Osprey's XRP ETF provides better regulatory oversight, the SEC seems more willing to give it the green light.

Due to the complete exposure to XRP provided by other issuers' Spot XRP ETFs, there have been multiple delays in the past. Nate Geraci, president of Nova Dius Wealth, commented on this development: "The first ETF offering Spot XRP exposure will be launched this week... Rex-Osprey is cleverly circumventing the regulations of the '40 Act to bring this product to market. This will be a good litmus test for the demand of the '33 Act Spot XRP ETF. The asset size of futures-based XRP ETFs is already approaching $1 billion."

The SEC will make a decision on 11 Spot ETFs in October.

The SEC is actively reviewing a total of 11 Spot XRP ETF applications, which will directly hold XRP tokens. This distinguishes them from the currently existing cryptocurrency products that are based on derivatives or leverage. According to the regulatory timeline, the SEC is expected to announce a final decision on these applications between October 18 and October 25, 2025. The review process has been delayed multiple times and includes a public comment period. Additionally, SEC approval could bring significant institutional inflows into XRP products.

Despite the growing optimism surrounding the upcoming ETF, the price of XRP has yet to catch up. XRP whales have sold off 40 million tokens in the market. Ahead of the FOMC meeting on September 17, despite strong expectations for a Fed rate cut, the broader Crypto Assets market remains uneasy.

Analysis of the Regulatory Framework for ETFs in the United States

In the United States, ETFs are primarily registered under two different legal frameworks: the Securities Act of 1933 and the Investment Company Act of 1940. These two different registration methods reflect the regulatory authorities' cautious attitude towards different asset classes:

• 1933 Act: This act is primarily used to regulate the initial public offerings of securities. Most spot Bitcoin ETFs are applied for under this act. Its core idea is to provide investors with comprehensive and truthful disclosures, but it imposes few restrictions on the composition of the fund's portfolio itself. Therefore, if the SEC approves a spot ETF under the 1933 Act, it means it recognizes the legitimacy of the underlying asset, which is a significant hurdle for many crypto assets.
• 1940 Act: This act is primarily used to regulate investment companies such as mutual funds, closed-end funds, and ETFs. (4) It has stricter requirements for fund operations, asset composition, and investor protection, such as diversification, leverage limits, and daily asset valuation. Due to its emphasis on investor protection, the SEC generally feels more comfortable with funds registered under this act. Many futures ETFs and hybrid funds containing various assets are based on this act. The XRPR mentioned in the article operates under the '40 Act framework, holding various assets, and takes advantage of the flexibility and higher regulatory comfort provided by this law.

Conclusion

The launch of the Rex-Osprey ETF, regardless of its structure, signifies that crypto assets are entering the mainstream market in the form of more complex financial products. Its successful listing may provide other issuers with a new idea to bypass the SEC's stringent scrutiny of pure Spot ETFs by offering hybrid products that comply with stricter regulatory requirements. This adds a new variable to the institutionalization process of Crypto Assets.