Simply put
- Canary Capital’s Spot XRP ETF saw a first-day trading volume of $58 million, surpassing the performance of Bitwise’s Solana ETF.
- XRPC marks the first spot fund of its kind in the U.S., exceeding analysts’ expectations upon launch.
- This increase can be partially attributed to liquidity providers and traders exploiting brief price discrepancies, according to Decrypt.
Canary Capital’s Spot XRP ETF (XRPC) kicked off with a strong $58 million in trading on its debut, making it the most successful launch of any ETF this year, even with a backdrop of declining cryptocurrency prices.
A few days post-launch, official filings showed that pre-launch registrations were already getting noticed as trading started, which drew an unexpectedly high interest right from the beginning.
Eric Balchunas, a senior ETF analyst at Bloomberg, was among the first to highlight these figures. He tweeted that on Thursday, Canary’s ETF “barely” outperformed Bitwise’s Solana Staking ETF based on Bloomberg data from late last month.
The trading volume came as a surprise. Balchunas had estimated around $17 million for XRPC, but it managed to reach that number within just half an hour, ultimately becoming the top debut of the year.
After a volatile first day, the price for Canary’s XRP ETF dropped by 7.8%, finishing at $24.55, as reported by Barchart.
This debut occurred during a broader crypto market slump, with market capitalization down 3.5% to $3.43 trillion, according to CoinGecko.
Bitcoin dipped by 3.4%, while Ether fell by 6.7%. Solana dropped around 5% to $145, losing some ground after the recent release of BSOL.
Analysts believe this strong debut indicates a significant appetite for cryptocurrency investment beyond just Bitcoin and Ether.
“XRP has one of the most dedicated retail communities in the crypto ecosystem, and although it’s tough to gauge the extent of this enthusiasm, every new product launch typically sparks substantial trading activity,” commented Min Jeong, a senior analyst at quantitative trading firm Presto.
Jeong further noted that XRP is “among the most recognized crypto assets” for average investors, which naturally boosts awareness and participation right from day one. “On the institutional side, there’s been a clear buildup of demand for compliant XRP exposure after Ripple’s regulatory victory, creating a general agreement about XRP’s status as a non-security,” he added.
“Professional investors who have been hesitant are now feeling more secure accessing their resources through a regulated vehicle,” Jeong mentioned, suggesting this shift might really enhance trading activities on the debut.
Still, the initial XRPC session seemed “mixed,” despite visible “organic demand” considering “XRP’s retail presence and newfound institutional confidence.”
Jeong indicated that much of the trading activity appeared to be driven by liquidity providers managing various baskets and traders seeking short-term gains from spot price variations.
A crucial question ahead is whether XRPC can establish itself as a reliable entry point for investors, with discussions about filling a “demand pool” that was previously not accessible, said Lawrence Samantha, CEO of crypto investment app NOBI.
Samantha also pointed out that if XRPC continues to see steady inflows, it could signal that financial institutions perceive this as a long-term investment opportunity. Conversely, if these capital flows slow down, it might hint that market makers are controlling early trading volumes.
