After years of anticipation, American investors can now access a regulated XRP product. While the start has been modest, this inaugural ETF could pave the way for a surge in capital inflows into the XRP market.
On September 18, the REX-Osprey XRP ETF made its debut on the U.S. market at $25.83. Since then, the price has slightly decreased, settling at $24.23, representing a decline of approximately 6.5%. Not the explosive launch some investors hoped for, but this isn’t unusual for a new crypto ETF.
What makes this ETF unique is the speed with which it was approved by the SEC. Compared to the usual 8-month process, REX-Osprey received the green light in just 75 days. This can be explained by the fact that it falls under the Investment Company Act of 1940, a different law than most traditional ETFs.
More flexible regulations from exchanges like Nasdaq and NYSE Arca have also facilitated the listing of this crypto ETF without endless procedures.
Although this is the first XRP ETF in the United States, other countries like Brazil and Canada have moved faster. Brazil has been trading the Hashdex Nasdaq XRP Fund since April, while Canada followed in June with funds such as Purpose and Evolve.
Despite this relative delay, the arrival of XRPR represents a significant milestone for American investors. They can now access XRP through their traditional brokers, without having to manage wallets or exchange platforms themselves.
The REX-Osprey is likely just the beginning. Several major asset managers, like those who entered the Bitcoin and Ethereum markets, have filed applications for their own XRP ETFs.
Once the SEC gives its approval to these heavyweight players, the impact on XRP’s price could be much more significant than with this initial ETF introduction. Investors should therefore remain attentive to upcoming announcements.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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