The first exchange-traded fund (ETF) giving U.S. investors exposure to XRP had a roaring debut on Thursday, pulling in nearly $38 million in the best ETF launch of the year so far.
The ETF, issued by Rex Shares and Osprey Funds, exceeded expectations as investors rushed to gain exposure to the cryptocurrency.
Meanwhile, the DOJE ETF, the first Dogecoin ETF traded on U.S. markets, generated a strong $17 million on its launch day.
The success of both funds signals pent-up demand for altcoin exposure, said Eric Balchunas, senior ETF analyst at Bloomberg. On X, he wrote it was a “good sign” for the long list of crypto funds waiting for SEC approval.
The Wall Street regulator on Wednesday approved new generic standards for listing commodity trusts, a move that could pave the way for faster entry of crypto ETFs into the market.
Market impact
XRP was recently trading at $3.01, down more than 3% over the past 24 hours, according to CoinGecko. Dogecoin was hovering near $0.27, after falling 6% over the same period.
After the massive success of Bitcoin and Ethereum ETFs, approved last year, issuers are now racing to meet investor demand for altcoin-focused products. The SEC has already received over 90 applications for funds tied to altcoins, token baskets, and mixed strategies.
Bitcoin and Ethereum ETFs have pulled in around $57 billion and $14 billion, respectively.
The Rex-Osprey XRP and DOGE ETFs offer investors exposure to both altcoins through a wholly owned subsidiary registered in the Cayman Islands.
Notably, Rex-Osprey launched these ETFs under the Investment Company Act of 1940, rather than the Securities Act of 1933, which is typically used for spot crypto ETFs. While the 1933 Act governs securities- or commodity-backed ETFs, the 1940 Act regulates investment companies such as mutual funds.
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