Strongest 2025 ETF Launch Fueled by Investor Demand
The Canary Capital XRP exchange-traded fund (ETF) launched on Thursday, November 14, and marked the strongest first-day debut among over 900 ETFs introduced in 2025. The fund concluded its initial trading sessions with a significant $58 million in trading volume and attracted more than $250 million in investor inflows.
This new ETF offers investors a way to gain exposure to XRP tokens utilizing an in-kind creation and redemption model, which received approval from the U.S. Securities and Exchange Commission (SEC) on July 29, 2025. Bloomberg ETF analyst Eric Balchunas recognized the launch as the year's most successful ETF debut in a recent X post.
Congrats to $XRPC for $58m in Day One volume, the most of any ETF launched this year (out of 900), BARELY edging out $BSOL's $57m. The two of them are in league of own tho as 3rd place is over $20m away. pic.twitter.com/MjsOeceeNb
— Eric Balchunas (@EricBalchunas) November 13, 2025
In-Kind Creation Mechanism Drives ETF Performance
The in-kind system enables ETF shares to be directly exchanged for XRP tokens, rather than relying solely on cash transactions. This mechanism is credited for the fund's higher inflows compared to its trading volume.
ETF expert Nate Geraci explained in an X post that the discrepancy between trading volume and inflows is due to in-kind creations, which are not reflected in trading volume figures. This system allows for substantial capital movement without directly impacting daily trading statistics.
Following the ETF's launch, sophisticated investors, often referred to as "smart money," increased their net long XRP positions by $44 million over the preceding 24 hours, according to data from the crypto intelligence platform Nansen. Concurrently, these traders maintained $55 million in net short positions on the Hyperliquid exchange, indicating continued bearish sentiment towards Solana.
The ETF opened its trading day at $24.55 and closed down 7.8% after a period of volatility. This occurred amidst a broader decline in the cryptocurrency markets, where the total market value decreased by 3.5% to $3.43 trillion. Bitcoin experienced a drop of 3.89%, Ether fell by 3.38%, and Solana lost approximately 5%, trading at $143. The ETF's inflows significantly surpassed initial analyst projections, with Balchunas noting that he had anticipated $17 million, a figure the fund surpassed within the first thirty minutes of trading.
Retail and Institutional Demand Bolster XRP's Position
Min Jung, a senior analyst at Presto, stated that XRP benefits from one of the most robust and enduring retail communities within the cryptocurrency space. She further noted that institutional investors have demonstrated significant pent-up demand for compliant XRP exposure, particularly following favorable regulatory developments for Ripple.
Lawrence Samantha, CEO of NOBI, commented that sustained inflows and creations for the XRPC ETF could serve as a strong indicator of how institutions are incorporating XRP into their long-term investment portfolios.
At the time of reporting, XRP was trading at $2.32, reflecting a 3.71% decrease in the last 24 hours, attributed to the general downturn in the overall market.
The ETF also attracted interest from professional investors who had previously been hesitant to engage with the cryptocurrency market. A notable portion of the initial inflows originated from liquidity providers involved in managing creation and redemption baskets, as well as traders seeking to capitalize on short-term price fluctuations or discrepancies.
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