REX-Osprey ETFs Set to Launch Friday as SEC Delays Rival Applications

TLDR

• REX-Osprey crypto ETFs including Bitcoin, XRP, Dogecoin, Bonk, and Trump token cleared SEC’s 75-day review window
• Funds expected to launch Friday unless SEC raises last-minute objections
• ETFs structured under 1940 Investment Company Act, offering simpler approval path than spot ETFs
• SEC delayed decisions on competing applications from Franklin Templeton, BlackRock, and Fidelity
• These would be among first multi-asset crypto funds to list in US under 1940 Act structure

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REX Shares and Osprey Funds are preparing to launch five cryptocurrency ETFs by Friday, September 12, following clearance of the SEC’s 75-day review period. Bloomberg Intelligence analyst Eric Balchunas confirmed the funds will debut this week barring any last-minute SEC intervention.

The lineup includes the REX-Osprey Bitcoin ETF, XRP ETF, Dogecoin ETF, Bonk ETF, and Trump ETF. All products are structured under the Investment Company Act of 1940, which provides a more streamlined approval process compared to Securities Act of 1933 filings.

The 1940 Act structure allows these ETFs to function as open-end investment companies holding securities or futures contracts. This differs from 1933 Act ETFs, which are typically used for physically backed products like spot Bitcoin or gold.

The Dogecoin ETF operates through a Cayman Islands subsidiary and relies on derivatives exposure rather than direct spot holdings. This structure enables the fund to provide crypto exposure while working within existing regulatory frameworks.

Regulatory Delays for Competing Products

While REX-Osprey funds advance toward launch, the SEC has postponed decisions on several high-profile applications from major financial institutions. Franklin Templeton, BlackRock, and Fidelity face delays on their Ether ETF applications that include staking features.

The SEC also delayed rulings on XRP and Solana ETF proposals. Bitwise’s Dogecoin ETF and Grayscale’s Hedera ETF received new deadlines extending to November 12.

These delays follow recent SEC clarifications regarding proof-of-stake blockchains and liquid staking activities. The agency determined that certain staking activities fall outside securities laws and beyond its regulatory oversight.

Market Impact and Structure

The REX-Osprey launches would mark the first multi-asset crypto funds to list in the United States under the 1940 Act structure. This provides broader access for both retail and institutional investors seeking cryptocurrency exposure.

Bloomberg ETF analyst James Seyffart reports 92 crypto exchange-traded products currently sit in the US pipeline. The REX-Osprey funds represent a fraction of this growing interest in crypto-based investment products.

The funds’ derivative-based approach allows them to offer crypto exposure without direct spot holdings. This structure has enabled faster regulatory approval compared to spot-based alternatives that face more complex review processes.

The timing comes as the SEC continues evaluating various crypto ETF structures and their compliance with existing securities regulations. The 1940 Act pathway has proven more accessible for fund sponsors seeking quick market entry.

Unless the SEC raises objections before Friday, these five crypto ETFs will begin trading on US exchanges this week.

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