The U.S. SEC has approved five encryption ETFs under REX-Osprey but postponed their listing, with a unique framework attracting follow.

Despite receiving approval from the SEC, the launch of five cryptocurrency ETFs under REX Shares and Osprey Funds (including DOGE, Bitcoin, XRP, TRUMP, and BONK) has been postponed until next week. These funds utilize a "registered investment company" (RIC) framework, which differs from traditional Spot ETFs. This innovative move is particularly noteworthy as the SEC is working to establish a unified set of digital asset listing standards.

SEC Approves Five Crypto ETFs, But Delays Launch

According to the latest news from Bloomberg ETF analyst Eric Balchunas, five crypto assets ETFs from REX Shares and Osprey Funds have been approved, but their debut has been postponed to next week. The DOGE ETF (DOJE), which was originally scheduled to launch today (September 12), has also experienced another delay. This move means that other REX-Osprey funds related to Bitcoin, XRP, TRUMP, and BONK will also be postponed for launch.

Unique RIC Framework: A "Middle Path"

Unlike the mainstream pure Spot Bitcoin and Ethereum ETFs currently on the market, REX-Osprey has chosen a framework known as "Registered Investment Company" (RIC).

Structural Characteristics: This structure allows the fund to primarily hold Spot Crypto Assets while retaining the flexibility to use derivatives and invest in other ETFs. Unlike traditional corporate (C-corporation) tax structures, RIC operates under established investment company regulations, providing investors with different tax treatment and regulatory review.

Advantages and Disadvantages: The RIC framework provides funds with an immediate entry into the market, but there may be disadvantages in terms of fees and tax structures. It represents a "middle path" between pure Spot products and completely innovative structures.

Standardization Framework: SEC Cautiously Advances

The approval of the REX-Osprey ETF comes at a time when the SEC is actively developing a standardized listing framework for encryption ETFs.

SEC's strategy: The framework aims to provide a "fast track" for tokens that meet certain criteria (such as market capitalization, trading volume, and liquidity), thereby eliminating the cumbersome process of submitting rule change applications one by one.

Regulatory Caution: Recently, the SEC issued a "halt order" on the conversion applications of Bitwise and Grayscale's crypto index funds, which analysts interpret as the SEC deliberately delaying to prevent any funds from establishing precedents that could cause confusion or be difficult to reverse before new digital asset listing standards are established.

Expected Batch Approval and Market Impact

Analysts predict that considering there will be over 90 applications for multiple altcoin ETFs, including Solana, Litecoin, and XRP, reaching their final deadline in October, the SEC may conduct bulk approvals at that time.

In this context, it remains to be seen how REX-Osprey's unique hybrid structure will perform. While the RIC framework offers an opportunity for immediate market entry, its potential disadvantages compared to pure Spot products may affect its long-term competitiveness.

Conclusion

The approval and delayed listing of the REX-Osprey Crypto Assets ETF is not just a simple event involving a few new funds; it is a reflection of the SEC's cautious progress in a complex and ever-changing regulatory environment. These funds, with their innovative structures, represent a transitional attempt before new standardized frameworks are introduced. Ultimately, the future of the Crypto Assets ETF market will depend on how the SEC balances innovation with regulation, as well as the comprehensive digital asset listing standards it will officially issue in the coming weeks.