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REX-Osprey debuts first US spot XRP ETF, powered by CF Benchmarks

REX-Osprey XRP ETF (XRPR) offers Wall Street access to a third crypto mega cap for the first time.

Ken Odeluga, CF Benchmarks

• 3 min read
REX-Osprey debuts first US spot XRP ETF, powered by CF Benchmarks

REX-Osprey XRP ETF (XRPR) offers Wall Street access to a third crypto mega cap for the first time

Introducing XRPR

CF Benchmarks congratulates REX-Osprey on the launch of its REX-Osprey XRP ETF (XRPR) the first U.S.-listed spot XRP ETF, marking a new phase for regulated access to digital assets.

Powered by CF Benchmarks

We are delighted to confirm that REX-Osprey has selected another CF Benchmarks index as the reference index for one of its newest ETFs, in this case, our CME CF XRP-Dollar Reference Rate - New York Variant (XRPUSD_NY).

Our XRPUSD_NY provides the same regulated and transparent, rules-based standards of replicability, market representativeness, and manipulation resistance delivered by all CF Benchmarks indices.

Key XRPR features

XRPR which listed today on the Cboe BZH exchange is a ’40 Act ETF, incorporated as a Cayman Subsidiary, a common ETF structure with no additional costs to investors, enabling streamlined handling of crypto exposure.

These structures have enabled REX-Osprey to secure relatively expedited authorization for XRPR, thereby empowering investors with accelerated access to this sought-after asset for the first time.

Objective

The fund will generally invest the majority of its net assets in XRP and assets that provide exposure to XRP.

US-traded

Meanwhile, XRPR trades on U.S. exchanges, making it fully eligible for and easily accessible to institutional allocators, RIAs and any investors seeking XRP exposure, combined with regulatory safeguards and clarity.

Use cases

These features make the REX-Osprey XRP ETF ideal for institutional use cases:

  • Portfolio managers: XRPR is the ideal product for investment managers seeking compliant, efficient XRP exposure via standard brokerage transactions, with no wallets or direct blockchain management required
  • Liquidity providers: Trading firms mandated to source XRP, offset XRP risk, or seeking to exploit arbitrage or margin opportunities, now have an additional vehicle to do so that is underpinned by a regulated reference rate (XRPUSD_NY) and operational transparency
  • Advisory solutions: Wealth managers and RIAs supporting client crypto allocations can now offer XRP protocol exposure, backed with the assurance of the most robust risk controls

About XRP

XRP is currently the third-largest cryptocurrency in terms of market value, with a free-float market capitalization of approximately $185 billion.

It is the native token of the XRP Ledger (XRPL), a decentralized, layer-1 blockchain, known for cost-effective payments and fast transaction speeds.

These features have made XRPL popular with major financial institutions, such as banks, FinTechs and cryptocurrency exchanges, which deploy it for real-time cross-border payments, remittances and tokenization projects, among other uses.

More than $1 trillion in value has been transacted over the network since it was established by the founders of Ripple Labs, Inc., in 2012.

XRP’s circulating supply equates to approximately 60 billion XRP, compared to a total pre-mined supply capped at around 100 billion tokens. A very small fraction of the supply has been trimmed over the years due to the fee, in XRP, prescribed for each XRP transaction. This fee can vary, depending on network activity, but the minimum ‘burn’ per transaction is set at 0.00001 XRP.

XRPL’s Consensus Protocol Algorithm (RCPA) mechanism differs sharply in comparison to Bitcoin’s Proof of Work (PoW) consensus mechanism and Ethereum’s Proof of Stake (PoS) mechanism. The RCPA defines how XRPL is managed by a network of independent Ripple validator nodes. Any Ripple transaction needs to be verified by at least 80% of the nodes on the network.

About REX-Osprey

REX-Osprey is a joint initiative between REX Financial, a leader in thematic and alternative ETFs, and Osprey Funds, a digital asset specialist focused on crypto access and infrastructure. Together, REX-Osprey develops products that combine the integrity of traditional financial structures with the transformative potential of blockchain technology.

About the CME CF XRP-Dollar Reference Rate - New York Variant

The CME CF XRP-Dollar Reference Rate - New York Variant (XRPUSD_NY) is a once-a-day investible benchmark index price for XRP with design features that promote replicability, manipulation resistance and index integrity, including aggregation of trade data from multiple XRP-USD markets operated by major cryptocurrency exchanges. Each venue conforms to CF Benchmarks’ rigorous regulatory requirements.

XRPUSD_NY is a Registered Benchmark under the UK Benchmarks Regulation (BMR) framework, calculated and administered to the highest regulatory standards. CF Benchmarks is a Registered Benchmark Administrator, regulated by the UK FCA.

XRPUSD_NY is the pre-eminent index price for XRP risk settlement in North American trading hours, being synchronized to the traditional U.S. financial market close of 4 pm New York Time. The index was launched on September 16th, 2024.

Conclusion

Underpinned by CF Benchmarks’ rules-based, transparent and regulated benchmark methodology, and REX-Osprey’s specialist expertise in bridging cryptocurrencies to traditional markets, the REX-Osprey XRP ETF (XRPR) is the ideal product for delivering convenient and safe XRP exposure to institutional and consumer investors.

More information

Click the links below to find out more about the REX-Osprey XRP ETF (XRPR) and the CME CF XRP-Dollar Reference Rate - New York Variant (XRPUSD_NY)

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