Ripple investors are looking forward to the approval of the XRP Coin ETF, anticipated in the next quarter. Meanwhile, REX-Osprey has announced an indirect launch of the XRP Coin ETF.
Launch of XRP Coin ETF
This week, REX-Osprey announced the launch of the XRP Coin ETF, which will start trading on the stock exchange. While this is exciting for Ripple investors, it is not the type of ETF approval many might have initially expected. Companies are exploiting a legislative loophole for such products.
Differences Between ETF and Trust
Products prepared under the 33 Act do not receive direct approval, but they automatically start trading due to a lack of objections. In contrast, ETFs under the 40 Act require approval from the SEC. Therefore, the approach taken by REX-Osprey for both XRP and Solana is designed to circumvent immediate SEC requirements.
REX-Osprey's Marketing Strategy
REX-Osprey is creating a product that can be listed without direct permission from the SEC as long as there are no objections. They then market it under names like XRP or SSK as if it were under the 40 Act, effectively turning the differences between the 33 and 40 Acts into a marketing strategy.
Thus, while announcements of 'ETF approvals' generate excitement, they actually represent a rebranding of products hidden behind ETF labels.
