In a significant development for the cryptocurrency landscape, the U.S. is witnessing the debut of exchange-traded funds (ETFs) tied to XRP and Dogecoin (DOGE), marking a pivotal moment in crypto investment opportunities. On September 18, REX Shares and Osprey Funds launched these groundbreaking products on the Cboe BZX Exchange, under the tickers XRPR and DOJE. This launch broadens the spectrum of cryptocurrency-focused ETFs beyond the familiar terrain of Bitcoin and Ether, potentially attracting a new cohort of investors intrigued by altcoins.
A New Frontier for U.S. Crypto ETFs
The introduction of XRP and DOGE ETFs in the U.S. is a notable shift in the crypto investment landscape. These ETFs, while not “pure” spot funds according to Bloomberg Intelligence analyst James Seyffart, represent an innovative approach to gaining exposure to the underlying assets. They are designed to hold XRP and DOGE directly but also plan to invest in other spot ETFs outside the U.S. to diversify exposure.
Moreover, the filings for these ETFs include provisions for using derivatives to achieve the desired exposure, but this isn’t their central strategy. This layered structure is indicative of the complexities involved in crafting regulated crypto ETFs within the U.S. market. Despite these intricacies, the launch marks the first time that U.S. brokerage accounts will have access to ETFs focused specifically on XRP and DOGE, thereby expanding the options available for retail and institutional investors alike.
Market Reactions and Expert Opinions
The launch of these ETFs has sparked varied reactions among market participants and analysts. On one hand, the inclusion of XRP and DOGE in the ETF sphere is seen as a progressive step towards diversifying crypto investment options. This move could potentially democratize access to these altcoins, which have historically been overshadowed by the dominance of Bitcoin and Ether in the ETF space.
On the flip side, some analysts remain cautious, pointing out the inherent risks associated with investing in altcoins, which are often more volatile than their more established counterparts. The hybrid structure of these ETFs, which combines direct holding with derivative and international ETF investments, may also pose challenges in terms of transparency and risk management.
CME Group’s Strategic Expansion
In parallel with the ETF launches, CME Group is poised to expand its crypto derivatives offerings by introducing options on XRP and Solana (SOL) futures, slated for October 13, pending regulatory approval. This strategic move underscores CME’s commitment to broadening its crypto derivatives lineup, following the substantial growth seen in altcoin futures trading.
Since their introduction, XRP and SOL futures have experienced robust trading activity, with XRP futures alone seeing more than 370,000 contracts traded, amounting to roughly $16.2 billion in notional value. This burgeoning interest in altcoin futures has prompted CME to offer options on both standard and “micro” contracts, catering to a wide range of market participants, from institutional investors to active individual traders.
Implications for the Crypto Market
The concurrent developments of ETF launches and expanded derivatives offerings are likely to have significant implications for the crypto market. For one, they reflect an increasing institutional interest in altcoins, which could lead to enhanced liquidity and stability for these digital assets. Furthermore, the availability of hedging tools such as options on XRP and SOL futures equips investors with more sophisticated mechanisms for managing risk and optimizing their portfolios.
However, these advancements also highlight the ongoing challenges of navigating regulatory landscapes and market volatility. As the crypto market continues to evolve, balancing innovation with regulatory compliance and investor protection will be crucial.
Looking Ahead
As these new products make their debut, the crypto community will be closely monitoring their performance and market impact. The introduction of XRP and DOGE ETFs, along with CME Group’s expansion into altcoin options, represents a broader trend of integrating cryptocurrencies into traditional financial markets. This evolution not only expands the investment landscape but also signals a maturing market that is increasingly accommodating diverse investor interests and strategies.
Ultimately, the success of these initiatives will hinge on their ability to deliver on investor expectations while maintaining robust regulatory standards. As the crypto space continues to mature, these developments could pave the way for even more innovative financial products, further solidifying the role of cryptocurrencies in the global financial ecosystem.
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.
