Dogecoin and Ripple Delay ETFs: What You Need to Know Before September 18

Rex-Osprey's XRP and Dogecoin ETFs are being rescheduled again this month. 

The debut of the Dogecoin (DOGE) and Ripple (XRP) spot ETFs, managed by Rex-Osprey, has been officially rescheduled for the September 18. 

The news of the postponement was confirmed by Bloomberg analysts Eric Balchunas and James Seyffart, who commented that these funds are likely to begin trading on Thursday of next week. Seyffart also offered technical details on the structure of these highly anticipated exchange-traded funds, indicating how they differ from traditional Bitcoin and Ethereum-based products already listed on the US market. 

Meanwhile, the XRP market is showing mixed signals: retail investors remain convinced, but whales have been significantly reducing their exposure to the cryptocurrency. 

XRP and DOGE: An accelerated market debut with an alternative structure

Unlike the Bitcoin and Ethereum spot ETFs, which were approved by the Securities and Exchange Commission (SEC) last year, and which have followed the 19b-4 regulatory process Under the Securities Act of 1930, Rex-Osprey's products for XRP and Dogecoin are structured as RICs (Registered Investment Companies). 

This alternative route, according to experts, allows for a faster market launch, avoiding the long approval times faced by other issuers, such as Fidelity or Bitwise, which are also seeking to bring altcoins to the regulated market. 

James Seyffart explained This strategy seeks to position Rex-Osprey as a pioneer in the alternative cryptocurrency spot ETF segment, taking advantage of a legal structure that, while valid, entails certain compromises. For example, the expert highlighted that one of the main challenges is tax treatment: RICs can face less favorable tax burdens than traditional ETFs, which could affect their long-term competitiveness.

Furthermore, the composition of these funds It will not be 100% cash. According to Seyffart, although the main objective is to offer direct exposure to the underlying assets, XRP and DOGE in this case, the regulatory documents allow the inclusion of derivatives and other ETFs in certain circumstancesThis introduces a degree of flexibility that could be useful in highly volatile scenarios, but it also raises questions about the product's purity as a direct investment vehicle.

Seyffart also noted that Rex-Osprey has already used this structure for its Solana ETF (SOL), which was converted from a C-Corp to a RIC to improve its tax efficiency. This precedent suggests the firm is willing to adjust its products based on market conditions and current regulations.

XRP: Between Retail Conviction and Whale Withdrawal

As Rex-Osprey's XRP ETF prepares for its debut, market behavior reveals a clear divide between different types of investors. On the one hand, retail investors have held their positions firmly, even in the face of increases in foreign exchange reserves that could have triggered panic selling. Experts confirm that no massive outflows have been recorded from this segment, indicating sustained confidence in the cryptocurrency.

On the other hand, whales – large holders of XRP – have been steadily reducing their exposure since the end of July. On average, they have sold 40 million XRP in the last 24 hours, which represents a significant capital outflow. Considering the cryptocurrency's current price, these sales represent more than $120 million, according to market analyst Ali Martinez. However, while these types of movements usually herald strong market corrections, in this case, the price of XRP has remained stable.

XRP is now moving above the $3,03, achieving a recovery of nearly 11% so far in September. From a technical perspective, the relative strength index (RSI) shows no signs of overbought conditions, indicating that the upward trend may have room to continue. However, the level near $3 remains a significant resistance that the market will need to overcome. Furthermore, attention is focused on the upcoming reaction following the launch of the Rex-Osprey ETF, an event that could set the tone for the next price move.

On the other hand, the lack of clear accumulation by large whales raises a sense of institutional caution. Although the ETF opens the door to greater regulated exposure to XRP, some aspects such as the fund's RIC structure and the potential inclusion of derivatives are raising concerns among large investors. Meanwhile, retail investors appear more confident and attracted by the growth prospects, especially if the ETF manages to attract new capital inflows.

Added to this, the market maintains expectations for possible SEC approval of spot ETFs of cryptocurrencies before mid-October. This decision could be a major catalyst for the price of XRP, as it would allow for more direct and regulated access, generating greater trust and potentially increasing demand for the digital asset. 

DOGE on hold, but on investors' radar

Dogecoin, the other player in the Rex-Osprey ETF lineup, has received less attention in recent analyses, but its inclusion is nonetheless significant. Like XRP, DOGE will be part of a spot ETF structured as a RIC, positioning it as a regulated option for direct exposure to the meme asset. Although market movements as significant as those reported for XRP have not been as significant, the delay in the launch also affects the expectations of investors interested in DOGE.

Rex-Osprey's strategy appears to be geared toward diversifying its crypto product offering, focusing on assets with strong communities and high visibility. 

DOGE, with its history of volatility and social support, could benefit from an ETF that allows institutional investors to participate without having to trade directly on exchanges. However, like XRP, the product's success will depend on its ability to build trust and attract sustained inflows.

What to expect on September 18?

The launch of the XRP and DOGE ETFs on September 18 represents a pivotal moment for the US crypto ecosystem. The RIC structure chosen by Rex-Osprey allows for a rapid market launch, but also poses some challenges that could impact institutional adoption.

Despite these obstacles, technical indicators suggest a stable outlook, and the crypto community is vigilant and optimistic. This day could mark the beginning of a new phase for XRP and DOGE, with the potential for significant changes in their trajectory and acceptance.