With the US government now reopened, the narrative surrounding XRP ETFs has been gaining significant traction. Excitement, in particular, has been building around Canary Capital’s XRPC ETF, which officially made its debut on November 13.
Initial reports indicated that the new Canary Capital XRP ETF was off to an impressive start. The XRPC ETF reportedly achieved over $57 million in trading volumes on its inaugural trading day.
This substantial trading volume meant that the XRPC ETF had the largest debut of all spot crypto ETFs launched this year.
The XRP ETF managed to surpass the Bitwise Solana ETF, which previously held the record for the ETF with the highest daily volume on its first day. This performance suggests a positive reception for the XRPC ETF in the market.
However, this may only be the beginning for XRP’s institutional demand, as more XRP ETFs are slated for launch.
XRP ETF Applications to Benefit from the SEC’s Accelerated Decisions for Crypto ETFs
The XRPC ETF might face competition sooner rather than later from newer launches. This is due to the SEC reportedly issuing guidance for accelerated decisions on crypto ETFs.
This guidance implies that pending XRP ETFs may finally receive a ruling from the SEC in an expedited manner. Analysts are closely watching XRP because it was among the top cryptocurrencies with multiple pending ETF applications.
Numerous XRP ETFs had their SEC decision deadlines scheduled between October 18 and October 25. However, the government shutdown led to unexpected delays. Although new deadline dates were not announced, the U.S. government has reopened, which means ETF decisions may be announced soon.
Previous reports earlier this week revealed that multiple XRP ETFs had appeared on the DTCC website. These included ETF products from Canary Capital, Franklin Templeton, ProShares, 21Shares, and Bitwise.
For context, Bitwise recently achieved success with its Solana ETF, which previously held the record for the highest day 1 trading volume of any crypto ETF. Furthermore, the Solana ETF demonstrated healthy demand, evidenced by its unbroken streak of positive inflows.
Is XRP Price on the Verge of a Recovery?
While the week has been exciting for XRP ETF prospects, the same cannot be said for XRP price action. The cryptocurrency concluded the week with a discount exceeding 5%.
XRP price hovered at $2.2 at press time. This price level previously served as a consolidation zone and represented a 38% discount from its July peak.
However, will XRP ETF prospects trigger significant demand to warrant a sizable recovery? The performance of SOL after Solana ETF approvals may offer insights into what to expect.
SOL price continued to maintain an overall downtrend despite a consistent streak of Solana ETF inflows. This indicated that the ETF flows were not substantial enough to offset the prevailing sell pressure in the market.
XRP price may face a similar situation, implying that bearish market conditions might dilute the post-ETF approval hype. Whether the XRP price will rally will depend overwhelmingly on the prevailing set of demand and supply factors.
Meanwhile, XRP flows hinted that bulls were building a strong defense after the latest downside. Additionally, whales were on the demand frontline, although their net inflows remained relatively low.