In a significant milestone for the cryptocurrency market, the first exchange-traded funds (ETFs) offering exposure to XRP and Dogecoin (DOGE) have begun trading in the United States. Launched on Thursday, these products by Rex Shares and Osprey Funds are now available on the Cboe BZX exchange under the tickers DOJE and XRPR. This development follows the debut of the Rex-Osprey Solana ETF back in July, marking another step in the expanding landscape of crypto investment vehicles.
A New Era for Crypto ETFs
The introduction of these ETFs is noteworthy as they provide investors with a more streamlined and secure avenue to gain exposure to major cryptocurrencies without the complexities of direct ownership. With XRP and DOGE being the third and eighth largest cryptocurrencies by market capitalization, respectively, this offering is likely to attract significant interest, particularly from institutional investors.
Unique Structures and Strategies
While both ETFs offer exposure to their respective cryptocurrencies, they do so in distinct ways. DOJE, which provides exposure to Dogecoin, does not hold the cryptocurrency directly. Instead, it gains exposure through a Cayman Islands-based subsidiary using futures and other derivatives. This strategy distinguishes it from typical crypto ETFs, which usually involve direct holdings of the underlying asset.
On the other hand, XRPR, structured to hold XRP directly, also invests in spot ETFs from outside the U.S. to achieve its exposure. This dual strategy aims to maximize the fund’s performance while managing potential risks associated with holding the cryptocurrency directly. According to Bloomberg Intelligence analyst James Seyffart, such a structure is designed to leverage the advantages of both direct holdings and international spot ETFs.
Historical Context and Market Impact
The journey to the launch of these products has been marked by regulatory hurdles and delays. Spot crypto ETFs only made their debut in the U.S. in January 2024, following years of rejections by the Securities and Exchange Commission (SEC). ETFs offering spot exposure to Bitcoin (BTC) were the first to be approved, followed by products for Ethereum (ETH) a few months later. The approval of XRP and DOGE ETFs represents a significant expansion of the market, catering to a broader spectrum of investor interests.
Crypto ETFs offer several advantages, particularly for institutional investors who seek exposure to digital assets without the challenges of direct ownership. By purchasing shares in these funds, investors can benefit from the price movements of cryptocurrencies without worrying about storage, custody, or security issues that come with holding the assets directly.
Balanced Perspectives on Investment
While the advent of these ETFs opens new doors for investors, it also raises questions about the underlying risks associated with cryptocurrency investments. Critics argue that despite the regulated nature of ETFs, the volatility and speculative nature of the crypto market cannot be entirely mitigated through these financial instruments. Therefore, potential investors are urged to conduct thorough research and consider their risk tolerance before diving into these products.
Conversely, proponents of crypto ETFs emphasize their role in democratizing access to digital assets while offering a more secure and regulated investment pathway. By providing exposure through an ETF, investors can participate in the crypto market with a reduced risk profile compared to direct investments.
The Road Ahead for Crypto ETFs
As the market for cryptocurrency ETFs continues to evolve, it is expected that more products will emerge, each with unique strategies and structures. The introduction of ETFs for XRP and Dogecoin signifies growing acceptance and interest in a wider range of digital assets beyond the pioneering Bitcoin and Ethereum.
Investors and market watchers will be keenly observing the performance of these new ETFs to gauge their impact on the broader market and their potential to attract further institutional investment. With the dynamic nature of the crypto industry, the success and adaptability of these ETFs could pave the way for even more innovative financial products in the future.
In conclusion, the launch of XRP and DOGE ETFs in the U.S. marks an important chapter in the ongoing integration of cryptocurrencies into traditional financial systems. As these products gain traction, they could play a vital role in shaping the future of crypto investments, offering both opportunities and challenges for investors worldwide.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
