US First-Ever XRP, DOGE ETFs Expect High Volume
Investors piled into the first Dogecoin (DOGE) and XRP (XRP)-traded currencies in the U.S. on their first day of trading, which was expected by analysts' trading volume.
Bloomberg ETF analyst Eric Balchunas said on X that most new ETFs see a trading volume of around $1 million, but the new crypto currency saw $54.7 million in transactions during the day, with “no drift.”
Investors REX Shares and Osprey Funds launched ETFs on Thursday tracking the price of XRP, the third-largest cryptocurrency, and Dogecoin, the eighth-largest cryptocurrency and largest memecoin.
Balchunas added that volumes were a “good sign for an attack” from crypto-related ETFs awaiting regulatory approval to launch. Issuers have filed dozens of crypto ETFs tied to speculative altcoins or novel instruments like staking.
XRP ETF moves to $40 million.
The REX-Osprey XRP ETF (XRPR), which tracks XRP, saw $37.7 million in volume, according to data from Balchunas and Cboe.
Balchunas says he has a “big day” in terms of funding starting in 2025.
XRPR generated quick revenue out of the gate, Balchunas said earlier that the ETF took in $24 million in the first hour and a half of its market launch.
“This is more than I thought,” he said. “For context, it's 5x more XRP futures than you did on day one and it's only 90 minutes.”
Dogecoin ETF also works well
Earlier Thursday, Balchunas said he expected the Dogecoin-tracking REX-Osprey DOGE ETF (DOJE) to see $2.5 million in volume per day, which he said was respectable but “nothing special.”
His expectations were “destroyed in the first hour of trading,” he said, as the ETF later approached $6 million.
“This is shockingly strong,” he said. “On day one, most ETFs sell for less than $1M.”
DOJE completed a $17 million transaction on Thursday, Balchunas added, ranking among the top five of more than 700 ETF launches this year.
ETFs haven't chased investors.
REX and Osprey offer the two ETFs under securities laws that differ from the laws under which most existing crypto-linked exchange-traded products have been launched.
Related: Grayscale SEC prepares to share Ether holdings by changing position – Arkham
XRPR and DOJE were registered in The 1940 Investment Company Act, known as the “40 Act”, and the popular Bitcoin (BTC) and Ether (ETH) currencies were launched last year under the Securities Act of 1933, or the “33 Act”.
Balchunas said earlier on Thursday that since both ETFs are registered under the 40 Act, “there may be less interest compared to other crypto first evers.”
Act 40 provides an expedited approval window of 75 days, compared to 240 days under Act 33, but comes with some restrictions on what an ETF can hold.
XRPR and DOJE do not hold crypto directly, but instead invest in a subsidiary based in the Cayman Islands. They also buy stocks on foreign exchange trading products in Europe and Canada that track XRP and DOGE to track asset prices.
Several pending crypto funds, including XRP and Dogecoin, are awaiting approval, and the Securities and Exchange Commission on Wednesday approved ETF listing standards that could speed up the process.
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