For the first time in the US, spot XRP and Dogecoin ETFs have begun trading on an exchange. These two funds, launched by REX-Osprey, attracted attention in the crypto investment world with their first-day performance. The XRPR ETF, focusing on XRP, reached $37.7 million in trading volume, breaking the record for the highest first-day volume among the 710 ETFs launched this year. The Dogecoin-focused DOJE ETF, meanwhile, placed among the top five openings of the year with $17 million in trading volume.
Bloomberg Senior ETF Analyst Eric Balchunas pointed out that these figures were much stronger than expected, commenting, “Most ETFs trade under $1 million on their first day, which is a pretty solid start.” Balchunas also noted that thanks to the SEC's recently approved new listing standards, more than 100 crypto ETFs are likely to launch within the next year.
Investor Interest in XRP and Dogecoin
The XRP ETF reached $24 million in volume in its first 90 minutes of trading, quintupling the performance of XRP futures ETFs. The Dogecoin ETF also saw approximately $6 million in volume in the first hour. This result demonstrates the growing investor interest not only in Bitcoin and Ethereum but also in alternative cryptocurrencies.
XRP is the third-largest cryptocurrency used by Ripple in cross-border payments. Its market capitalization recently surpassed that of traditional banking giant Citigroup. Ripple has also taken a significant regulatory step by applying for a banking license in the US. While Dogecoin was previously described as a "meme coin," it is now attracting the attention of institutional investors.
Strengthening Regulatory Framework
The US Securities and Exchange Commission (SEC) implemented a new listing standard on Wednesday that will expedite the approval process for crypto ETFs. The approval process, which previously took approximately 240 days, will now be completed in approximately 75 days. This change coincided with the launch of the XRP and Dogecoin ETFs and has been met with positive market response.
According to analysts, this development could enable crypto ETFs to reach a wider audience. Following the Bitcoin and Ethereum ETFs, the regulated investment of XRP and Dogecoin will increase diversity in the cryptocurrency market and accelerate the inflow of institutional capital.
What was the impact on the markets?
Despite strong volume on the ETFs' first day of trading, the price of XRP traded flat at $3.04 in the last 24 hours. Dogecoin, on the other hand, declined 1 percent to $0.27. Investors are currently awaiting the long-term impact of ETFs.
