XRP ETF Test Case Clears Hurdles, With Big Firms Preparing to Follow Suit

The REX-Osprey Hybrid Spot XRP ETF (XRPR), the first U.S.-listed exchange-traded fund to provide direct exposure to XRP, debuted on September 18, 2025, marking a significant milestone in the evolution of regulated cryptocurrency investment productsThe Coin Republic^[1]. The ETF, structured under a registered investment company (RIC) framework, distinguishes itself from traditional spot crypto ETFs by holding XRP directly while retaining flexibility to utilize derivatives and other ETF investments under specific market conditionsREX Shares^[2]. This approach aligns with regulatory requirements while offering a hybrid model that balances operational efficiency and compliance. Bloomberg ETF analyst James Seyffart noted that the RIC structure provides a middle ground between pure spot exposure and structural innovation, enabling the fund to adapt to evolving market dynamicsThe Coin Republic^[1].

Pre-launch technical indicators and whale activity created a favorable environment for XRP’s price trajectory. Large holders dumped 160 million XRP tokens between late August and September 12, reducing overhang supply and potentially clearing the path for price appreciationThe Coin Republic^[1]. Trader Ali Martinez highlighted a TD Sequential buy signal at $2.97, suggesting upward momentum ahead of the ETF launchThe Coin Republic^[1]. XRP’s price surged from $2.94 on September 9 to $3.18 by September 13, reinforcing the technical setup for a potential breakout.

The ETF’s introduction expands institutional access to XRP, a token with significant cross-border payment utility and growing adoption. Ray Youssef, CEO of NoOnes, emphasized that the REX-Osprey ETF could attract $1.5–$2 billion in capital inflows, given XRP’s low institutional penetration compared to Bitcoin and EthereumThe Coin Republic^[1]. He projected a price target of $3.50 in the near term, with a $4.00 threshold possible by early 2026 if additional XRP ETFs gain approval. The “ETF-effect” is expected to amplify in early trading weeks as institutional and speculative capital capitalizes on first-mover advantagesThe Coin Republic^[1].

Regulatory clarity played a pivotal role in the ETF’s approval. The SEC’s recent adoption of generic listing standards for crypto ETFs streamlined the approval process, allowing products like XRPR to bypass the 240-day review hurdleInvezz^[4]. This development followed the resolution of the SEC vs. Ripple lawsuit, which affirmed that XRP is not a security, removing a critical barrier for ETF issuersInvezz^[4]. Eleven applications for XRP ETFs are pending, with decision deadlines set between October 18 and November 14, 2025Invezz^[4]. The REX-Osprey ETF serves as a test case for market demand, with larger firms like Franklin Templeton and WisdomTree expected to launch spot XRP ETFs in OctoberCoinpedia.org^[5].

Market analysts caution that while the hybrid structure of XRPR offers flexibility, it may limit the direct impact of investor inflows on XRP’s price compared to pure spot ETFs. True spot ETFs, such as those anticipated from Grayscale and Bitwise, will require direct XRP holdings, creating a clearer link between investor demand and token valuationCoinpedia.org^[5]. The Federal Reserve’s September rate cut, announced just hours before the ETF launch, added macroeconomic uncertainty but also positioned XRP to benefit from risk-on sentimentCoinpedia.org^[5].

The broader crypto ETF landscape is expanding rapidly, with CME Group planning to list XRP futures options on October 13, 2025CoinDesk^[3]. This complements the REX-Osprey ETF by providing hedging tools for institutional participants. As of September 2025, XRP futures had seen over 370,000 contracts traded, signaling growing institutional interestCoinDesk^[3]. The combination of regulated products, regulatory clarity, and macroeconomic factors positions XRP for increased adoption, particularly as alternative crypto assets gain traction in mainstream financeThe Coin Republic^[1].