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- Canary Capital’s spot XRP Exchange Traded Fund (ETF) makes a successful debut as its first-day trading volume becomes the highest among the 900 ETFs launched this year.
- An analyst has argued that XRP’s popularity among day-to-day investors played a crucial role in its debut performance.
The first-ever US spot XRP Exchange Traded Fund (ETF) was launched by Canary Capital yesterday, November 13, as detailed in our earlier news brief. Interestingly, its debut was historic, as it recorded a $58.6 million trading volume, surpassing the analysts’ estimate of $17 million.
Data suggests that XRPC recorded a whopping $26 million in volume in just 30 minutes after going live. Additionally, $245 million worth of XRP was purchased on its first day of trading.
This massive performance has received applause from key ETF stakeholders, with Bloomberg analyst Eric Balchunas labeling its debut volume as the best among the about 900 ETFs launched this year.
Technically, this is the first-ever ETF in the US that holds real XRP instead of futures or derivatives. Many also believe that the hype surrounding its debut is due to Canary’s effort to prepare the product since its S-1 registration statement with the US Securities and Exchange Commission (SEC) last year.
As mentioned in our earlier post, the asset manager had to update the S-1 filing to remove the delaying amendment. This week, it also submitted the Form 8-A to gain approval. At the end, its trading volume surpassed that of Bitwise’s Solana ETF (BSOL), which had $57 million on the first day of trading.
It is also important to note that six other spot XRP ETFs are expected to go live in the next 11 days, with Franklin Templeton’s XRP ETF scheduled for November 18. Bitwise XRP ETF has been scheduled for November 19 to 20, followed by 21Shares (TOXR) and CoinShares (XRPL), both going live on November 20 to 22.
According to reports, Grayscale XRP ETF and WisdomTree XRP ETF would also be launched on the NYSE on November 25.
As indicated in our earlier discussion, Franklin Templeton has updated its S-1 registration to remove a procedural clause that authorized the SEC to delay the filing’s effectiveness.
More Discussion Surrounding XRP ETF (XRPC) Strong Debut
Speaking on the XRPC performance so far, a senior analyst at quantitative trading firm Min Jung disclosed that this is not much surprising, as XRP has emerged as one of the best-known crypto assets among investors. He also stated that institutional investors were waiting to embrace the ETF due to its compliant exposure after its regulatory win.
XRP has one of the strongest and most persistent retail communities in crypto, a level of fandom that’s difficult to quantify but has historically translated into outsized trading activity whenever new products launch.
In the crypto market, the price of XRP is, however, struggling to hold above its current support level of $2.2 despite recording a daily trading volume of $7.5 billion, representing a 31% surge. At press time, the price was down by 9% in the last 24 hours.
Meanwhile, analyst Egrag Crypto believes that the price could rise to $10 and subsequently to $50 as long as the $1.94 support holds, as highlighted in our previous analysis.
