The launch of the Canary Capital XRP exchange-traded fund (ETF) has reignited enthusiasm across the altcoin market, marking a historic moment for crypto ETFs in 2025. With an impressive $58 million in first-day trading volume, it became the highest-performing ETF debut of the year. Bloomberg ETF analyst Eric Balchunas noted that no other crypto or traditional ETF has matched this level of activity, making it a standout success in an otherwise cautious market.
Alongside the record-breaking volume, the fund also attracted more than $250 million in day-one inflows, outpacing all other cryptocurrency ETFs. ETF analyst Nate Geraci attributed much of this momentum to the newly approved in-kind creation model, which allows ETF shares to be exchanged directly for XRP tokens instead of cash. The U.S. Securities and Exchange Commission (SEC) granted approval for this mechanism on July 29, opening the door for more efficient and cost-effective crypto ETF transactions.
XRP Sees Increased Smart-Money Interest
Following the ETF’s launch, institutional and “smart money” traders quickly increased their net long positions in XRP by $44 million. This shift signals strong expectations that the token’s value may rise in the near future. Despite this optimistic activity, XRP has remained relatively stable around the $2.30 level.
Market Remains Mixed as Liquidity Declines
While enthusiasm surrounds the XRP ETF, market-wide liquidity continues to decline and investor sentiment remains cautious. Adding to the complexity, spot Bitcoin ETFs recorded significant outflows on the same day, highlighting challenges across the broader crypto landscape. Even with these headwinds, the success of Canary Capital’s XRP ETF suggests that well-structured altcoin investment products still hold strong appeal for both institutional and retail investors.
