First Spot XRP ETF in the U.S. Surpasses $100 Million AUM, Signaling Strong Market Interest
The first-ever spot XRP exchange-traded fund (ETF) to gain approval in the United States has reached a significant benchmark, reinforcing its status as a pioneering investment vehicle in the digital asset space. The REX-Osprey XRP ETF, trading under the ticker XRPR, has now exceeded $100 million in assets under management (AUM), just over a month after its launch on September 18, 2025.
Developed through a partnership between REX Shares and Osprey Funds, XRPR provides investors with regulated exposure to the real-time market price of XRP, one of the most widely recognized cryptocurrencies. This ETF marks a turning point for institutional and retail investors seeking a compliant and accessible way to gain exposure to XRP without directly holding the underlying asset.
Unlike conventional crypto ETFs based on futures or derivatives, XRPR offers spot market exposure. According to its investment structure, at least 80% of the fund’s net assets, including any borrowed capital for investment purposes, are allocated to XRP or financial instruments closely tied to its price. However, XRPR does not directly hold XRP tokens in custody; instead, it achieves price tracking via the REX-Osprey™ XRP subsidiary, maintaining compliance with the U.S. Investment Company Act of 1940.
This legal framework allows XRPR to operate similarly to traditional commodity or equity ETFs, making it a landmark product for the digital asset ecosystem. Although returns are designed to mirror XRP’s performance closely, investors should note that the fund may not perfectly replicate the token’s price due to structural and regulatory limitations.
The ETF’s rapid growth in AUM suggests significant investor confidence and pent-up demand for XRP-based financial products. It also underscores the broader trend of increasing institutional interest in regulated crypto investment vehicles, especially as the market matures and regulatory clarity improves.
While XRPR remains the only XRP-focused ETF currently available to U.S. investors, the landscape could soon become more competitive. Leading asset managers such as CoinShares and WisdomTree have submitted filings for pure spot XRP ETFs. These proposed funds would directly hold XRP tokens, offering one-to-one exposure to its price, much like spot Bitcoin ETFs such as IBIT.
However, progress on these filings has been delayed. The U.S. Securities and Exchange Commission (SEC) has halted the review process due to a government shutdown, which has effectively paused all regulatory actions, including ETF approvals. Prior to the shutdown, the SEC had introduced a streamlined framework for commodity-based ETFs, potentially paving the way for faster approvals once operations resume.
The timing of the shutdown is especially critical, as most pending spot XRP ETF applications were approaching final deadlines between October 19 and 25. The delay has left asset managers and market participants in a holding pattern, awaiting further guidance from regulators once the government reopens.
As of the latest market data, XRP is trading at $2.54, reflecting a 3.6% increase over the past 24 hours. The token’s performance continues to attract investors’ attention, especially as interest in regulated crypto products grows.
Why XRPR’s Launch Matters for the Future of Crypto ETFs
The introduction and success of XRPR mark a pivotal moment in the evolution of cryptocurrency investment tools. It establishes a precedent for how spot ETFs—those directly tied to the real-time value of digital assets—can function within existing U.S. regulatory frameworks. XRPR’s model, which avoids direct token custody, may serve as a template for similar products aiming to bridge the gap between traditional finance and decentralized assets.
Investor Benefits and Considerations
For investors, XRPR offers several advantages: exposure to XRP’s market performance without the technical complexity of wallet management, private key storage, or navigating crypto exchanges. However, like all ETFs, it comes with management fees, and because it doesn’t hold XRP directly, there may be minor tracking discrepancies.
Another benefit lies in compliance. By operating under existing securities laws, XRPR provides a level of regulatory assurance that many crypto-native platforms cannot match. This factor is particularly appealing to institutional investors, who often face strict internal guidelines around asset custody and counterparty risk.
Challenges Ahead for Competing ETF Proposals
While XRPR has taken the lead, the path is far from clear for other prospective XRP ETFs. The SEC has traditionally been cautious about approving crypto-related financial products, citing concerns over market manipulation, liquidity, and investor protection. Although the introduction of a streamlined approval process for certain commodity ETFs is promising, it’s uncertain how quickly it will be applied to digital assets like XRP.
Moreover, direct custody models pose additional regulatory hurdles. Unlike XRPR, which uses a synthetic exposure structure, a fund that holds XRP directly would require robust custody solutions and may be subject to more stringent disclosure requirements.
The Broader Implications for Crypto Markets
The success of XRPR may inspire the development of similar ETFs for other altcoins, particularly those with established use cases and market demand. If the SEC eventually greenlights more spot crypto ETFs, we could see a wave of institutional capital entering the space, further legitimizing digital assets as a mainstream investment class.
Additionally, the growing acceptance of crypto ETFs could pressure traditional financial institutions to expand their digital asset offerings. Banks, wealth managers, and brokerages may increasingly integrate crypto ETFs into client portfolios, especially if they remain compliant with regulatory standards.
Conclusion
The REX-Osprey XRP ETF’s milestone of $100 million AUM is more than just a financial achievement—it’s a signal that investor appetite for regulated, transparent crypto exposure is stronger than ever. As the regulatory landscape continues to evolve, and pending ETF applications await resolution, XRPR stands as an early indicator of what the future of crypto investing could look like in the United States.
While obstacles remain, especially with the SEC’s halted operations, the momentum behind crypto ETFs is undeniable. Whether through synthetic structures like XRPR or direct custody models still under review, the integration of digital assets into traditional finance appears to be accelerating. Investors, asset managers, and regulators alike will be watching closely as this new era unfolds.