Crypto ETFs Build Bridge Between Meme Coins and Institutional Portfolios

The U.S. market for cryptocurrency exchange-traded funds (ETFs) expanded on September 18, 2025, with the debut of the first products offering exposure to XRP and Dogecoin (DOGE). Rex Shares and Osprey Funds launched the ETFs, trading under the tickers DOJE and XRPR, respectively, on the Cboe BZX exchange. These funds follow a similar structure to the Rex-Osprey Solana ETF introduced in July 2025, signaling a growing trend of institutional-grade access to alternative crypto assets. DOJE, the Dogecoin-linked fund, diverges from traditional spot ETFs by utilizing a Cayman Islands-based subsidiary to gain exposure through futures and derivatives. In contrast, XRPR holds XRP directly but supplements its exposure with investments in non-U.S. spot ETFs.

The DOJE ETF’s structure reflects the regulatory and operational complexities of direct crypto holdings. By leveraging derivatives and a subsidiary, the fund avoids direct custody of DOGE, which is the eighth-largest cryptocurrency by market capitalization. XRPR, meanwhile, targets XRP, the third-largest crypto asset, which operates on the XRP Ledger, a network designed for institutional financial transactions. Bloomberg Intelligence analyst James Seyffart noted that XRPR’s approach combines direct XRP ownership with international ETF investments to diversify its exposure. Both products cater to investors seeking indirect participation in volatile crypto markets without the logistical challenges of managing private keys or navigating custody solutions.

The introduction of these ETFs aligns with broader developments in the U.S. crypto ETF landscape. Spot ETFs for Bitcoin and Ethereum, approved in early 2024, paved the way for diversified crypto exposure, with institutional investors increasingly adopting these products as a gateway to digital assets. XRP and DOGE, though less established than Bitcoin and Ethereum, have garnered significant retail interest. XRP’s utility in cross-border payments and DOGE’s meme-driven adoption highlight their distinct value propositions, which the new ETFs aim to capitalize on. However, the funds’ reliance on derivatives and indirect holdings introduces additional layers of complexity compared to pure spot ETFs, potentially affecting their correlation to the underlying assets’ price movements.

Market analysts emphasize the strategic importance of these ETFs in expanding institutional access to crypto. By offering a regulated, custodial-free investment vehicle, DOJE and XRPR reduce barriers for large investors hesitant to engage directly with crypto infrastructure. This aligns with the Securities and Exchange Commission’s (SEC) cautious approach to crypto regulation, which has prioritized structured products over direct token ownership in ETF formats. The success of these funds could influence future regulatory decisions, particularly if they demonstrate robust demand and liquidity.

The debut of XRP and DOGE ETFs underscores the evolving role of ETFs in mainstream crypto adoption. While Bitcoin and Ethereum ETFs remain the dominant products, the inclusion of alternative tokens reflects a maturing market willing to explore diverse risk profiles. For XRP and DOGE, the ETFs represent a bridge between speculative retail enthusiasm and institutional-grade investment strategies. As the U.S. crypto market continues to evolve, the performance of these funds will likely shape regulatory and market dynamics for years to come.

Source: [1] ETFs Offering Exposure to XRP, DOGE Debut in U.S. - CoinDesk (https://www.coindesk.com/markets/2025/09/18/etfs-offering-exposure-to-xrp-doge-debut-in-u-s)