Upcoming Altcoin ETFs in the US
This week, two new trading funds focused on Altcoins, specifically XRP and Dogecoin, are anticipated to launch in the United States. It seems like regulators are starting to embrace crypto investment products more.
The Rex-Soprey XRP ETF is set to debut this week, as indicated by the fund issuer on Monday. Trading under the ticker XRPR, this will be the first US ETF offering direct spot exposure to XRP, which is the third-largest cryptocurrency by market cap.
Both Rex and Osprey have successfully navigated the Securities and Exchange Commission’s (SEC) 75-day review period, with trading scheduled to kick off on Friday, unless there are any unexpected hold-ups.
This fund will be launched under the Investment Companies Act of 1940, which appears to be a more straightforward pathway to approval compared to the Securities Act of 1933, the route taken for spot Bitcoin ETFs.
Unlike other products that directly possess the underlying assets, this structure allows the SEC to automatically sanction a fund 75 days after it’s filed, barring any objections.
Nate Geraci, president of Nova DIUS, remarked that this would serve as a useful test for the demand of ACT Spot XRP ETFs, noting that the futures-based XRP ETF is already nearing $1 billion in assets.
Dogecoin ETF Launching Soon
The XRP fund isn’t the only Altcoin ETF on the horizon this week. “Currently, the Doge ETF, named Doje, is set to launch on Thursday,” said Bloomberg ETF expert Eric Balknas on Monday.
The Rex-Soprey Dogecoin ETF has been approved under the 1940 Act, a framework typically utilized for mutual funds and diversified ETFs. It’s noteworthy that this will mark the first Memecoin ETF in the US.
This comes after Rex-Soprey launched its first Solana Staking ETF (SSK) in July, though interest has been tepid, with only $274 million in managed assets since its launch, and a slight decline in inflows over the last five trading days.
Additionally, in late August, Rex-Soprey submitted an application for a BNB (BNB) staking ETF.
A Growing Pipeline of Altcoin ETFs
As of the end of August, more than 90 crypto exchange products are waiting for SEC approval. This information was provided by Bloomberg ETF analyst James Sefert.
On Tuesday, it was noted that Canary Capital has updated its Litecoin ETF prospectus submissions, which the SEC is expected to finalize in the first week of October.
Bitwise also filed a prospectus for a Spot Avalanche (Avax) ETF on Monday. According to Seyffart, Vaneck and Grayscale are among the other two publishers actively pursuing Avalanche ETF filings.
However, the SEC has postponed its decision regarding Bitwise’s proposed Dogecoin ETF and Grayscale’s Hedera ETF, now pushing the deadline to November 12th.
