- Rex-Osprey’s new XRP ETF launched with much fanfare, capturing a $24 million volume in less than two hours of trading.
Rex-Osprey finally launched the first spot XRP exchange-traded fund (ETF) in the US on Thursday. Upon rollout, the new investment product with the ticker “XRPR” gained $24 million in volume within its first 90 minutes of trading.
The numbers surpassed analysts’ expectations, which Bloomberg’s Eric Balchunas also admitted. He claimed the figures were five times more than any XRP futures ETFs on day one. The date marked the arrival of the company’s spot Dogecoin (DOGE) ETF, too.
XRP Price Performance
The hype surrounding the launch of Rex-Osprey’s new exchange-traded product (ETP) moved the price of XRP between a $3.01 low and a $3.14 high intraday. Additionally, the token’s trading volume spiked by over $8 billion as its market cap peaked at $187 billion in the same timeframe.
Amid the latest developments, two technical analysts warned of a potential pullback in the price of XRP in the coming days. Ali Martinez said XRP may experience turbulence, which could drag its price back to $2.78. He didn’t provide much context in his forecast, but it may be influenced by profit-taking from speculators who are cashing out from the news regarding the launch of the first spot XRP ETF in the US.
Meanwhile, the pseudonymous Egrag Crypto cautioned about XRP’s retest at the $3.03 mark. He believes the asset already completed the retest in mid-September, but it may still be within that phase. He stated that the token breaking below that level could drag the price down to $2.85, which has been its strong support in the daily chart.
On the other hand, XRP overcoming the key resistance at $3.20 could help it build significant momentum for a pump to $3.30 before a potential attempt at another breakout from the $3.65 top the token achieved this year.
The Unique Feature of the XRPR
Despite the buzz it’s generating, The Motley Fool recently highlighted that the peculiar nature of the XRPR may not be everyone’s cup of tea. The financial advisor explained that Rex-Osprey structured the product differently from other crypto ETFs to fast-track its approval process.
The Motley Fool reminded investors that XRPR is a hybrid fund compliant with the 1940 Investment Act, unlike the existing spot Bitcoin (BTC) and Ethereum (ETH) ETFs structured under the 1933 Securities Act. The XRPR invests a significant portion of its assets (up to 40%) in shares of other related ETFs, as well as holding the underlying token directly. This allows the fund to gain spot exposure to XRP while still operating within the framework of the 1940 Act.
Furthermore, the fund may use a Cayman Islands subsidiary to hold its direct XRP assets, which can help satisfy source-of-income requirements for regulated investment companies.
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