Spot exchange-traded funds (ETFs) linked to the payments-focused cryptocurrency XRP and the popular meme token Dogecoin made a significant entrance into the U.S. market on Thursday, attracting considerable trading volume. The REX-Osprey XRP ETF, trading under the ticker XRPR on the CBOE, recorded a remarkable trading volume of $37.7 million. This figure not only marked the largest debut volume for any ETF launch in 2023 but also surpassed the previous record held by the AI Revolution ETF from Dan Ives’ Wedbush, signaling a robust interest from investors in alternative cryptocurrencies beyond the well-established Bitcoin and Ether.
In an intriguing development, XRP’s market capitalization recently outpaced that of Citigroup, one of the traditional banking sector’s giants. The company behind XRP, Ripple, which focuses on facilitating cross-border transactions, has also submitted an application for a banking license in the United States, further establishing its position within the financial ecosystem.
Dogecoin, despite its branding as a non-serious meme token, also enjoyed a successful launch with the REX-Osprey Dogecoin ETF, identified as DOJE. This ETF boasted a first-day trading volume of $17 million, placing it among the top five ETF debuts of the year. The enthusiasm surrounding DOJE’s performance underscores a growing acceptance of Dogecoin in investment circles.
The successful launch of these two ETFs aligns with the recent approval by the Securities and Exchange Commission (SEC) of a new, streamlined listing standard for crypto ETFs. This new framework has reduced the approval timeline significantly, shortening it from 240 days to approximately 75 days.
As market participants await the first-day net inflow figures, expected to be reported later on Friday, the excitement surrounding these offerings indicates a potential shift in the investment landscape for cryptocurrency-related financial instruments.
