The REX-Osprey XRP ETF recorded notable volume on its first day on Cboe, highlighting the demand for regulated XRP exposure among institutional and retail investors. In the first 90 minutes, it reached over $24 million in volume and opened at $25.80 per share, compared with an approximate net asset value of $25, according to TradingView. This launch has generated significant market anticipation, underscoring the growing interest in regulated crypto products and the potential for greater integration of XRP into diversified portfolios.
Context and Impact of the XRP ETF
The XRPR debuted on September 18 on Cboe BZX, marking a milestone compared to previous XRP-linked products due to its initial traction and reference structure.
The fund’s structure combines multiple references: 59% CME CF XRP-Dollar Reference Rate, 39% CoinShares Physical XRP, and a cash reserve, aiming to reduce counterparty risks and provide balanced exposure to XRP. This composition also allows managers to adapt strategies according to market volatility and investor demand, increasing the fund’s flexibility.
The vehicle is established under the Investment Company Act of 1940, a framework that facilitates listing and allows the mixing of spot exposure and reference instruments within a regulated structure.
REX-Osprey simultaneously launched a Dogecoin ETF (DOJE), reinforcing its multi-entry strategy into alternative assets.
Analysts anticipate significant capital inflows, estimating that flows into XRP ETFs could reach up to $8 billion in the first year, potentially impacting XRP liquidity and price profile. However, they caution that future performance will depend on investor interest and the regulatory environment surrounding XRP.
Implications
The XRPR debut affects adoption, liquidity, and regulatory perception, providing a regulated vehicle that channels demand into a format accessible to various investor profiles.
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Initial volume: over $24 million in 90 minutes, according to TradingView.
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Opening price: $25.80 per share versus an approximate NAV of $25.
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Fund composition: 59% CME CF XRP-Dollar Reference Rate, 39% CoinShares Physical XRP, and cash.
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Projected flows: analysts foresee up to $8 billion in the first year.
The XRPR debut, with over $24 million in 90 minutes, indicates latent demand for a regulated XRP vehicle. Tracking flows and the regulatory framework will be key to determining whether the launch drives sustained adoption or represents a temporary peak, while REX-Osprey reinforces its strategy with the simultaneous DOJE launch, consolidating its position as an innovator in digital asset ETFs.
