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The 3rd largest cryptocurrency has its own ETF, the price is soaring

BY Marek Jendral
XRP has its own ETF

XRP has reached a historic moment as the first spot ETF product for this cryptocurrency debuts this week. According to Finbold, the fund will be issued by REX Shares, trading under the ticker XRPR.

XRP receives first spot ETF

Unlike spot BTC and ETH ETFs, which are structured as commodity trusts under the 1933 Act, XRP ETF falls under the Investment Company Act of 1940. This gives it a distinct regulatory framework and sets an interesting precedent for future crypto funds.

The product is seen as the first regulated instrument for investors seeking direct exposure to the third-largest cryptocurrency by market capitalization. This step opens the door to broader institutional adoption and represents a significant milestone for cryptocurrency portfolio diversification.

According to CoinMarketCap, XRP is currently the third-largest cryptocurrency with a market capitalization of $184.34 billion. It trades daily with a volume of approximately $6.81 billion, highlighting its significant position among digital assets and growing interest from global investors.

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Price growth and future institutional interest

Experts note that the XRPR debut is not only a test of investor interest but also a signal of growing demand for alternative crypto products. Existing XRP futures funds have already exceeded $1 billion in assets under management.

Bloomberg analysts, however, point out that the fund is not a “pure spot” product, as SEC documentation allows the use of derivatives if needed. Nevertheless, the core of the portfolio remains focused on XRP – filings indicate that at least 80% of the fund’s net assets will be invested directly in cryptocurrency. The remainder will be allocated among U.S. Treasury bonds, government obligations, money market funds, and cash equivalents.

Market price of XRP cryptocurrency
Market price of XRP cryptocurrency. Source: tradingview.com

XRP currently trades at $3.08 according to TradingView, slightly below its all-time high of $3.66. Technical analysis suggests that the cryptocurrency is approaching a breakout, which could trigger a new growth impulse in the market.

This step is therefore a significant signal for the financial market. Along with filings from other major players, such as Bitwise and Franklin Templeton, it indicates that the XRP ETF could be just the beginning of a broader wave of regulated altcoin investment products.

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Marek Jendral

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Marek Jendral