In a landmark move for the cryptocurrency sector, the first U.S. spot exchange-traded funds (ETFs) offering direct exposure to XRP and Dogecoin (DOGE) have officially begun trading. The launch by REX Shares and Osprey Funds marks a significant milestone, bringing two of the most popular—and controversial—digital assets under the full umbrella of federal regulatory oversight for the first time.
A New Path to Market: The 1940 Act Advantage
The new funds, trading under the tickers XRPR (XRP ETF) and DOJE (Dogecoin ETF), utilized a strategic regulatory pathway that differs from the standard process used for Bitcoin and Ethereum ETFs.
Rather than filing under the Securities Act of 1933, REX-Osprey launched these products under the Investment Company Act of 1940. This structure, as detailed by the U.S. Securities and Exchange Commission (SEC), has a key advantage: it allows the ETF to automatically go effective 75 days after its registration statement is filed, unless the SEC explicitly intervenes. This provided a more predictable and potentially faster route to market amidst a complex regulatory landscape.
Breaking Down the Barriers for Meme Coins and Major Alts
The introduction of these ETFs is a watershed moment for both assets, but for very different reasons.
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For XRP: The XRPR ETF offers a new, regulated channel for institutional investment following Ripple’s landmark partial legal victory against the SEC, which affirmed that XRP is not in itself a security. As noted by analysts like Bloomberg’s Eric Balchunas, the success of existing XRP futures ETFs, which have gathered nearly $1 billion in assets, suggests strong underlying demand for a spot product.
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For Dogecoin: The DOJE ETF is arguably the more revolutionary launch. It represents the first time a U.S. ETF has been dedicated to a so-called “meme coin”—a category of cryptocurrency that originated from internet jokes and typically lacks fundamental utility. Its immediate market performance was startling; it quickly smashed first-day expectations by generating nearly $6 million in trading volume, far exceeding the typical sub-$1 million debut for new ETFs.
Market Reaction and What It Means for Investors
The market response was immediately positive. Following the news, both cryptocurrencies saw notable price upticks. Data from CoinGecko showed Dogecoin rallying over 7% to trade above $0.28, while XRP held strong above $3.11.
This launch follows REX-Osprey’s earlier success with the first U.S. Solana (SOL) ETF, which also includes a unique staking reward feature for investors. The firm is rapidly building a niche by bringing altcoin exposure to traditional finance in a compliant manner.
The arrival of these ETFs does more than just provide a new investment vehicle; it signals a growing acceptance of a broader array of digital assets by the mainstream financial establishment. It validates the investor appetite for cryptocurrencies beyond just Bitcoin and Ethereum and opens the potential for a new wave of institutional capital to flow into these markets. For traders and long-term investors alike, the game has just expanded.
