In a historic entrance into the U.S. market, spot exchange-traded funds (ETFs) for both XRP and Dogecoin made a remarkable debut on Thursday, accumulating an impressive combined trading volume of $54.7 million on their first day.
The REX-Osprey XRP ETF, identified by the ticker symbol XRPR and trading on the CBOE, achieved a phenomenal trading volume of $37.7 million. This figure not only set a new record for the highest debut of any ETF this year, but it also surpassed the previous record held by the Wedbush AI Revolution ETF, which was led by analyst Dan Ives. Based on data from Bloomberg’s senior ETF analyst Eric Balchunas, the enthusiasm for investment vehicles linked to cryptocurrencies beyond the prominent Bitcoin and Ether signals a growing interest among investors.
In a sign of XRP’s rising influence, its market capitalization has recently overtaken that of Citigroup, a major player in the traditional banking landscape. Ripple Labs, the company responsible for developing XRP and enabling efficient cross-border transactions, has also initiated the process of applying for a banking license in the United States.
In addition to the XRP ETF, the REX-Osprey Dogecoin ETF, recognized by the ticker DOJE, also saw significant activity, reaching a first-day trading volume of $17 million. This achievement positions DOJE among the top five ETF launches in 2023, a noteworthy accomplishment given Dogecoin’s status as a largely humor-driven meme token that has nonetheless captured the public’s imagination.
The successful introductions of these two ETFs can be attributed to a recent regulatory shift by the U.S. Securities and Exchange Commission (SEC). The SEC’s new streamlined listing standard for cryptocurrency ETFs has reduced approval timelines to approximately 75 days, a significant decrease from the previously required 240 days, paving the way for increased crypto investment opportunities.
Investors eagerly anticipate further details, including first-day net inflow figures, which are expected to be unveiled later on Friday. As the crypto market continues to evolve, the strong performances of the XRP and Dogecoin ETFs may indicate a transformative moment for investors seeking diverse avenues within this dynamic sector.
As the landscape of cryptocurrency investment expands, the remarkable start of these ETFs showcases the growing acceptance and penetration of digital assets in traditional market structures. With both regulatory advancements and increasing interest from retail and institutional investors alike, the future looks promising for innovative trading products in the crypto space.
