Beyond Bitcoin & Ether: XRP and Dogecoin ETFs Open Mainstream Doors

Main Points :

• On September 18, 2025, the U.S. saw its first ETFs offering exposure to XRP (“XRPR”) and Dogecoin (“DOJE”) via REX-Osprey, listed on Cboe.
• Neither ETF is “pure” in the sense of buying and holding only the underlying asset; XRP ETF holds some foreign ETF shares, and DOGE ETF uses derivatives through a Cayman Islands‐subsidiary.
• Both launched under the Investment Company Act of 1940 (“40 Act”), which offers a faster regulatory path than prior crypto ETFs under the Securities Act of 1933, but comes with trade-offs (e.g. stricter rules).
• Trading volumes exceeded many expectations on Day 1: XRPR saw ~$37.7 million in volume, with ~$24 million in first 90 minutes; DOJE also beat forecasts. Combined debut volume was around $50-$55 million.
• SEC has also approved generic listing standards for spot crypto ETFs, which should speed up approval for more altcoin (beyond BTC and ETH) products.
• Immediate market impact: XRP price rose; institutional interest is strong; the regulatory environment seems more favorable under current administration.

1. Background: What changed for crypto ETFs

Before this event, the U.S. had approved spot ETFs for Bitcoin (BTC) and Ethereum (ETH), but altcoins like XRP and DOGE were left out of the mainstream ETF infrastructure due to regulatory concerns.

Regulation under the SEC required individualized filings under the Securities Act of 1933 for many products, which could take up to ~240 days. The new regulatory environment: approvals of generic listing standards allow exchanges like NYSE, Nasdaq, and Cboe to list certain crypto spot ETFs under standardized rules more quickly—maybe in as little as 75 days.

2. Key Features of XRPR and DOJE

Structure & Exposure

• XRPR (XRP ETF) holds XRP directly, but it may also invest substantially (~40%) in other spot or tracking ETFs outside the U.S., and possibly use derivatives or foreign vehicles to gain exposure.
• DOJE (DOGE ETF) does not directly hold DOGE in all cases; instead, it gains exposure via a Cayman Islands‐based subsidiary using derivatives, and by investing in foreign ETPs tracking DOGE.

Regulatory Form: 40-Act

Both ETFs are registered under the Investment Company Act of 1940. Compared to spot crypto ETFs under the 1933 Act, that means:

• A faster timeline for certain approvals.
• Some limitations (e.g. stricter governance, possibly less flexibility in marketing/distribution).
• Fee structures are higher than many BTC/ETH ETFs: e.g. XRPR has ~0.75% management fee.

3. Market Debut & Institutional Demand

• XRPR recorded ~$24 million in volume in its first 90 minutes, ultimately around $37.7 million on its debut day.
• DOJE also beat forecasts: over $6 million in first hour, ~$17 million total for the day.
• Combined, both ETFs totaled ~$50-$55 million in trading volume on their first day—well above typical new ETF launches.

4. Regulatory & Market Trend Landscape

Regulatory Shifts

• The SEC recently approved generic listing standards for commodity-based and spot crypto ETFs. This change reduces the burdens on issuers and could lead to many more altcoin spot ETFs being listed.
• The current administration (post-Trump election) has made steps to be more favorable toward crypto products. Paul Atkins is now SEC Chair, pushing for frameworks more supportive of digital assets.

Investor Behaviour & Implications

• These launches suggest strong pent-up institutional demand for regulated exposure to crypto beyond just BTC & ETH.
• There are several pending spot XRP ETF applications (from firms like Grayscale, Bitwise, WisdomTree, etc.) with deadlines in Oct-Nov 2025. The new generic rules may help them gain faster approval.

Risk & Trade-Offs

• Because the ETFs are not fully “pure” spot in all respects (use of derivatives, foreign ETF shares, etc.), there is basis risk, counterparty risk, maybe tax or regulatory risk.
• Higher fees for these altcoin ETFs compared to BTC/ETH ETFs could reduce net returns, particularly for passive or long-term investors.
• DOGE is a meme coin; its utility is limited; investor sentiment may be volatile. XRP has had legal/regulatory uncertainties (Ripple vs SEC etc.), although recently the leverage is shifting.

5. What This Means for Someone Seeking the Next Source of Yield or Real-World Blockchain Use

For people exploring new crypto assets, or looking for practical/real-world applications of blockchain, these developments matter in several ways:

• Regulated exposure: Having ETFs means institutional capital can deploy funds in XRP or DOGE without dealing with custody or having to hold the tokens directly. That tends to lower friction, possibly decrease volatility from back-end issues (e.g. exchange hacks, wallet risk).
• Diversification: Investors now have options beyond the big two (BTC, ETH), allowing portfolios to get exposure to payment-oriented tokens (XRP) or community/meme tokens (DOGE).
• Innovation in financial product structure: The use of 40-Act, foreign ETF holdings, derivatives, subsidiaries—these hybrid models may become more common, especially for altcoins with less regulatory clarity. If you’re tracking or designing new projects, understanding how these structures work is essential.
• Demand and momentum: The strong day-one performance suggests that new altcoin ETFs, even with imperfections, could draw meaningful capital. Projects or tokens that have good liquidity, strong community/institutional interest, and clearer legal status may benefit disproportionately.

6. Recent Developments Since the Launch

• Following the ETF launches, trading volume remained strong, and XRP’s price has experienced upward pressure.
• CME Group, a major derivatives exchange, plans to list options on XRP futures starting October 13, 2025. This gives institutions more tools for hedging or speculating.
• More altcoin ETF applications are in the pipeline. Because of the newly approved generic listing standards, which reduce the lead time and regulatory burden, we may see more spot altcoin products (Solana, Cardano etc.) becoming tradable in ETF form.

7. Possible Risks & Uncertainties

• Regulatory uncertainty still exists. Although the SEC has moved to more friendly stances, legal classification of crypto assets remains unsettled in many instances; risk of future regulation or litigation (as in the case versus Ripple) cannot be fully ruled out.
• Crypto market volatility: especially with tokens like DOGE that depend heavily on sentiment. Sudden shifts in narrative or policy (taxation, bans, platform rules) could hurt performance.
• Fee drag: With fees of up to ~1.5% in some DOJE/altcoin offerings, cost eats into returns. Those deciding to allocate to these ETFs should compare fee structures carefully.
• Counterparty and liquidity risks: because some exposure is through foreign ETFs, derivatives, or subsidiaries, there is risk tied to those intermediaries.

8. Summation & Outlook

The launch of XRP and DOGE ETFs in the U.S. marks a watershed moment in the maturation of the crypto market. It signals that regulatory, investor, and market infrastructure have progressed to a point where altcoins can join BTC and ETH in the ETF ecosystem. For people looking for new sources of yield, exposure, or utility in blockchain, these products open more doors—but they come with trade-offs. The structural complexities of these ETFs mean that they aren’t quite the same as holding the tokens yourself, in terms of risk, cost, and exposure.

Moving forward, the pace of altcoin ETF launches, coupled with upcoming derivatives tools (e.g. futures/options), will be a key area to watch. Tokens or projects that have good regulatory clarity, liquidity, use-case, and community/institutional backing are likely to be best placed to benefit.