TLDR
- REX-Osprey crypto ETFs for Bitcoin, XRP, Dogecoin, Bonk, and Trump token cleared SEC 75-day review
- Funds set to trade Friday September 12 unless regulators object
- First multi-asset crypto ETFs using 1940 Act structure in the US
- SEC delayed competing applications from BlackRock, Fidelity, and Franklin Templeton
- 92 crypto ETF products currently in US regulatory pipeline
Five new cryptocurrency ETFs from REX Shares and Osprey Funds are preparing to launch Friday after successfully navigating the SEC’s regulatory review process. Bloomberg Intelligence analyst Eric Balchunas confirmed the funds cleared the mandatory 75-day waiting period.
The crypto ETF lineup includes products tracking Bitcoin, XRP, Dogecoin, Bonk, and Trump token. All funds operate under the Investment Company Act of 1940, which provides a faster path to market compared to spot crypto ETFs.
“This is a ’40 Act, which doesn’t directly invest fully in spot,” Balchunas explained. “So long as the SEC doesn’t say anything, you can let it launch 75 days after filing.”
The structure allows these ETFs to function as open-end investment companies holding derivatives and futures contracts. This approach differs from physically-backed products that hold actual cryptocurrency tokens.
SEC Delays Major Competitors
While REX-Osprey advances to market, the SEC postponed decisions on several high-profile ETF applications from major financial institutions. Franklin Templeton, BlackRock, and Fidelity face extended reviews for their Ethereum ETF proposals that include staking features.
The regulatory agency also delayed XRP and Solana ETF applications. Bitwise’s Dogecoin ETF and Grayscale’s Hedera ETF received deadline extensions until November 12.
These delays follow recent SEC guidance clarifying that proof-of-stake blockchains and certain liquid staking activities fall outside securities regulations. This shift could reshape the regulatory landscape for future token-based ETF applications.
Market Impact for Crypto ETFs
The REX-Osprey launches represent the first multi-asset cryptocurrency funds to list under the 1940 Act structure in the United States. This provides retail and institutional investors with broader access to diversified crypto exposure through traditional brokerage accounts.
Bloomberg data shows 92 crypto exchange-traded products currently sit in the US regulatory pipeline. The successful launch of these five funds could accelerate approval timelines for similar structured products.
The derivative-based approach enables crypto exposure without direct token custody requirements. This structure has proven more acceptable to regulators compared to spot-based alternatives requiring complex custody arrangements.
Market analysts expect the funds to begin trading this week unless the SEC raises last-minute objections before the Friday deadline.
