XRP News Today: Indirect XRP ETF Hits $100M, Proving Crypto's Place in Traditional Finance

The REX Osprey XRP ETF (XRPR) has crossed the $100 million assets under management (AUM) threshold, marking a pivotal moment for XRP-focused investment vehicles in the U.S. market, according to a Coinotag report. Launched as the first XRP ETF in the country, the fund offers indirect exposure to Ripple's native token through a diversified structure under the Investment Company Act of 1940, avoiding direct token custody while complying with regulatory standards, the Coinotag report adds. This model, which leverages derivatives and related securities, has attracted both institutional and retail investors, with steady inflows driven by XRP's role in cross-border payments and recent legal clarity, the Coinotag article notes.

The ETF's success underscores a broader shift in how traditional finance is integrating cryptocurrencies. Unlike spot-based ETFs that hold actual tokens, XRPR operates as a diversified investment company, reducing volatility risks while aligning with XRP's market performance, the Coinotag article observes. Analysts note that this structure appeals to conservative investors, with the fund reporting year-to-date returns competitive with direct XRP holdings. The milestone also highlights the growing demand for accessible XRP products, particularly as the token's market cap exceeds $30 billion, the Coinotag piece reports.

However, the regulatory landscape remains complex. Pending approvals for pure spot XRP ETFs from issuers like Franklin Templeton have been delayed due to the ongoing U.S. government shutdown, which has hampered Securities and Exchange Commission (SEC) operations, the Coinotag article states. While the current structure allows for quicker launches and oversight, experts predict that once the shutdown resolves, the SEC's generic listing standards could expedite approvals for additional XRP ETFs. This delay has inadvertently amplified XRPR's first-mover advantage, with the fund capturing significant institutional capital amid regulatory uncertainty, according to a TradingNews report.

The ETF's growth is part of a larger institutional expansion in the XRP ecosystem. The CME Group's XRP derivatives suite has processed $26.9 billion in notional volume since its launch, with open interest rising to $3.88 billion, the TradingNews report adds. Meanwhile, Ripple's acquisition of Hidden Road (rebranded as Ripple Prime) has established the first crypto multi-asset prime brokerage, integrating XRP with stablecoin and FX services, the TradingNews article notes. These developments reinforce XRP's utility in settlement and collateral use cases, complementing ETFs as tradable investment instruments, the TradingNews piece observes.

Technical indicators also suggest bullish momentum for XRP. The token's price has stabilized near $2.54, with on-chain data showing accumulation patterns and a Crypto Fear & Greed Index in neutral territory, as a CoinEdition analysis reports. Retail sentiment has turned bearish, with Santiment reporting extreme fear levels—historically a precursor to rebounds, the CoinEdition analysis says. Meanwhile, whale activity and ETF inflows indicate continued institutional confidence, even as broader crypto markets consolidate, the TradingNews report adds.

Looking ahead, analysts project XRPR's AUM could double to $200 million by early 2026 if regulatory bottlenecks persist, the TradingNews report projects. The fund's success signals a maturing market for XRP, with its indirect exposure model paving the way for broader adoption. As macroeconomic conditions favor digital assets—including slowing U.S. inflation and anticipated Federal Reserve rate cuts—XRP's institutional integration mirrors Bitcoin's early ETF trajectory, the TradingNews article concludes.