Crypto Commentator Ripple Van Winkle posted a message on X saying, “They Just Hacked the ETF System.” The post included a video in which he explained that REX-Osprey had found what he described as a “regulatory side door” through the Investment Company Act of 1940, which he referred to as the “40s Act loophole.” According to Van Winkle, while other companies are “waiting in line for ETF approvals” through the Securities and Exchange Commission’s usual process, REX-Osprey has managed to bypass delays using this alternative route. They Just Hacked the ETF System Must Listen $XRP Holders! pic.twitter.com/70tTtEp1BA — Ripple Bull Winkle | Crypto Researcher (@RipBullWinkle) September 16, 2025 In his explanation, he compared the traditional approval process to waiting at the DMV and said that this new path allows the issuer to effectively “skip the line.” He emphasized that the importance of this development lies in the role exchange-traded funds play as a bridge for institutional investors, highlighting retirement accounts, pension funds, and hedge funds as the types of capital most likely to enter through these vehicles. He argued that by using the 1940 Act structure, the fund may come to market more quickly than many anticipated, which could accelerate broader access to digital assets such as XRP . Implications for Institutional Capital Van Winkle emphasized that ETFs are crucial for institutional participation in crypto markets, as they offer a regulated framework for large capital pools. He noted that the SEC has historically taken years to approve crypto-based ETFs, creating delays for investors seeking exposure. By pointing to the REX-Osprey filing , he suggested that this new approach changes expectations around timing and could bring what he called “bigger money flowing in sooner than anyone thought.” He went further to explain that once one entity gains approval through such a mechanism, other market participants are likely to follow, which may lead to a wider opening of the market. Van Winkle concluded by asking viewers whether this should be viewed as a “genius move” or a “dangerous act,” leaving the matter open for interpretation but underscoring that the consequences could be significant. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Market Reaction and Additional Commentary The post received engagement from users offering different interpretations. One user, Edward, commented that the move may represent “a way for the SEC to give gentle approval” and described it as a method for the regulator to “carefully open the door now for the other ETFs without fanfare.” This perspective frames the development not as a circumvention but rather as a deliberate step by the SEC to introduce such products into the market gradually. Industry coverage of REX-Osprey’s filing under the Investment Company Act of 1940 supports the factual basis of Van Winkle’s remarks, noting that the structure does provide a route to market that can, under certain conditions, become effective without extended delays. Analysts have also observed that this may encourage faster institutional access. Still, caution remains about how regulators may ultimately respond and whether similar filings will be permitted to proceed without challenge. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post They Just Hacked the ETF System? Researcher Says XRP Holders Must Listen to This appeared first on Times Tabloid .
