A historic event is taking place in the cryptocurrency market – the launch of the first ETF based on XRP by REX Shares.
What is the XRP ETF?
REX Shares introduces a new product – REX-Osprey XRP ETF (XRPR). This provides investors with the opportunity to directly invest in XRP in the US for the first time. XRP is the third-largest crypto asset by market capitalization, behind Bitcoin and Ethereum.
Parameters and Objectives of the XRPR Fund
The primary objective of XRPR is to accurately mirror XRP's price movements. It has been announced that the fund will track XRP price movements ‘exclusive of fees and expenses’. The fund's annual expenses include management fees and distribution fees, while other expenses are zero. Management expenses will largely be covered by REX Advisers, LLC.
Legal and Tax Aspects
The legal cooperation method enables the fund to bypass standard approval processes. Unlike most ETFs, this fund will be classified as a taxable C-corporation, meaning distributions to owners will be taxed within the fund before dividends are distributed to owners.
The launch of REX-Osprey XRP ETF represents an important step for the cryptocurrency market, offering opportunities for new investments amid growing interest in XRP.
