The launch of Canary’s XRP ETF has proven to be a significant milestone in the financial landscape, following its debut on November 13. The initial trading volume has not only surprised analysts but also highlighted a thriving interest in cryptocurrency investments.
Canary’s XRP ETF Achieves Impressive $58 Million First-Day Trading Volume
According to Bloomberg analyst Eric Balchunas in an X post, the newly launched ETF, designated as XRPC, garnered a remarkable $58 million in its first day of trading. This accomplishment sets it apart as the leader among approximately 900 ETFs launched this year, surpassing even the initial success of Bitwise’s Solana ETF, which drew in $57 million.
The discrepancy is notable as it positions both ETFs in a category of their own, far beyond the next closest launch, which recorded merely $38 million. The predictions made by analysts were notably conservative, with Balchunas estimating around $17 million and his counterpart James Seyffart suggesting a figure of $34 million.
Canary Capital’s CEO, Steven McClurg, had expressed confidence in a much higher volume, suggesting that expectations were misguided. Seyffart acknowledged the robust support from the XRP community, referring to them as a passionate group driving this performance.
Market strategist Nate Geraci commented on this trend, pointing out that most recent crypto ETFs have consistently defied traditional finance expectations, indicating a shift in investor preferences away from conventional banking standards.
Canary’s Fund Post $245 Million in Net Inflows
An announcement from Canary Capital revealed staggering net inflows of $245 million for their XRP ETF. This figure significantly outpaces the $70 million inflows seen by Bitwise’s offering on its debut day, showcasing a strong investor appetite.
According to Geraci, the elevated inflows can be attributed to in-kind creations, which allow the fund to issue shares backed by tokens rather than cash, hence not reflected directly in trading volumes. This innovative structure is essential for increasing liquidity and maintaining investor interest.
In a related commentary, Bitwise CIO Matt Hougan remarked on the nuanced perception of crypto assets, stressing that widespread approval doesn’t guarantee an ETF’s success. He indicated that an ETF thrives not simply from average sentiment but from a dedicated base of enthusiastic investors.
As of this writing, XRP is trading around $2.28, reflecting a decline of over 7% in the past 24 hours, according to data from CoinMarketCap.
