REX and Osprey Crypto ETFs Poised for Launch Following SEC Review
New cryptocurrency exchange-traded funds (ETFs) from REX and Osprey have cleared the U.S. Securities and Exchange Commission’s (SEC) 75-day review period and are expected to begin trading by this Friday, according to Bloomberg Intelligence analyst Eric Balchunas.
Balchunas explained in a phone interview with Cointelegraph that “post-effective” status indicates the funds are set to launch unless the SEC raises a last-minute objection. The anticipated offerings include the REX-Osprey Bonk ETF, Trump ETF, Bitcoin ETF, XRP ETF, and Dogecoin ETF.
Regulatory Framework Simplifies Launch for ’40 Act ETFs
The Dogecoin ETF, previously reported to debut on Thursday, is structured under the Investment Company Act of 1940. This regulatory framework differs from the Securities Act of 1933, which governed the approval of spot Bitcoin ETFs last year.
“This is a ’40 Act, which doesn’t directly invest fully in spot,” Balchunas noted. “So long as the SEC doesn’t say anything, you can let it launch 75 days after filing.” Most U.S. ETFs operate under the ’40 Act as open-end investment companies that can hold futures-based securities, whereas ’33 Act ETFs typically cover physically backed commodities such as spot Bitcoin or gold.
SEC Delays on High-Profile Ether, Solana, and XRP ETF Decisions
While REX and Osprey’s ETFs move forward, the SEC has delayed rulings on several prominent crypto ETF applications from major firms including Franklin Templeton, BlackRock, and Fidelity. Recent notices from the SEC indicate a need for additional review, particularly concerning Ether staking within these funds.
The agency also postponed decisions on ETFs for XRP and Solana. Earlier in the week, the SEC extended the deadline for Bitwise’s Dogecoin ETF and Grayscale’s Hedera ETF to November 12.
These delays follow the SEC’s recent clarifications that certain liquid staking activities fall outside its securities jurisdiction. In May, the regulator also determined that proof-of-stake blockchains themselves do not constitute securities, signaling evolving regulatory perspectives on crypto products.
Outlook
With 92 crypto exchange-traded products currently in the U.S. pipeline, according to Bloomberg ETF analyst James Seyffart, the market continues to watch how regulatory decisions influence the pace of crypto ETF launches.
FinOracleAI — Market View
The imminent launch of REX and Osprey’s crypto ETFs marks a positive development for the market, expanding retail and institutional access to diversified crypto assets through regulated products. The use of the Investment Company Act of 1940 structure facilitates a smoother approval pathway, reducing regulatory uncertainty compared to spot-based ETFs.
However, ongoing SEC delays on major Ether, Solana, and XRP ETFs highlight persistent regulatory caution, particularly around staking and emerging crypto protocols. Investors should monitor SEC commentary for further guidance on staking and proof-of-stake assets, which could materially impact future ETF approvals.
Overall, the successful debut of these ETFs may boost market liquidity and investor confidence in crypto investment vehicles, but regulatory risks remain a key factor to watch in the near term.
Impact: positive
