The highly anticipated launch of the first U.S. spot Ripple (XRP) Exchange-Traded Fund (ETF) has been extended, creating a buzz within the cryptocurrency community. Originally expected earlier, the REX Osprey spot XRP ETF is now scheduled to debut on September 18th, marking a pivotal moment for XRP's institutional adoption and market presence. This development comes with unique structural considerations that set it apart from other crypto ETF filings.
A Unique ETF Structure and Its Implications
Bloomberg ETF analyst James Seyffart clarified that the REX Osprey XRP ETF will be structured as a Registered Investment Company (RIC), diverging from the more common 19b-4 process used by other major issuers. This RIC structure potentially allows for a quicker path to market, as demonstrated by REX Osprey's "playbook" to outpace rivals. However, it also introduces certain tax inconveniences, a factor that previously compelled the firm to convert its Solana ETF to a RIC to remain competitive. While primarily a spot ETF, Seyffart noted that the product offers flexibility, allowing it to hold derivatives or other ETFs alongside spot XRP, though its main goal remains near-total spot exposure.
Market Sentiment and XRP's Price Outlook
The impending ETF launch has elicited a mixed but generally optimistic response from the market. Retail investors are demonstrating strong conviction, with reports indicating no panic selling despite recent fluctuations in exchange reserves. Conversely, large institutional players, or "whales," have continued to offload XRP, averaging about 40 million XRP daily since July, and have not yet shown signs of re-accumulating. Despite this divergence in sentiment, top traders on Binance have exhibited increasing bullishness, significantly raising their long positions. On the price charts, XRP has shown an 11% recovery in September, and while an overhead supply zone at $3 presents a potential hurdle, the daily Relative Strength Index (RSI) does not yet suggest an overheated market, hinting at further upside potential ahead of the ETF's debut.
