XRP ETF debut outshines all 2025 launches with $250M inflows, record volume
The debut of the Canary Capital XRP exchange-traded fund (ETF) is signaling renewed demand for altcoins, after the fund posted the strongest first-day performance of any of the over 900 ETFs launched in 2025.Canary Capitalâs XRP ETF closed its first day with $58 million in trading volume, marking the most successful ETF debut of 2025 among both crypto and traditional ETFs, said Bloomberg ETF analyst Eric Balchunas in a Thursday X post. Moreover, the new fund garnered over $250 million in inflows during its first trading day, surpassing the recent inflows of all other crypto ETFs. Part of the reason behind the successful launch was the ETFâs in-kind creation model, according to ETF analyst Nate Geraci.âA few people asking how itâs possible to have âonlyâ $59mil trading volume, but nearly $250mil inflows⌠The answer? In-kind creations, which donât show up in trading volume,â wrote Geraci in a Thursday X post. The in-kind redemption model enables the creation and redemption of ETF shares through the underlying asset, as opposed to cash-only transaction models. In this case, Canary Capitalâs ETF shares can be exchanged for XRP tokens.The US Securities and Exchange Commission (SEC) approved in-kind creation and redemption for cryptocurrency ETFs on July 29, Cointelegraph reported at the time. Smart money traders rotate into XRP longs after ETF debutThe launch of the ETF inspired a bullish rotation among the industryâs most successful traders, as tracked by returns and labeled as âsmart moneyâ traders on the crypto intelligence platform Nansen.Smart money traders have added $44 million worth of net long XRP positions over the past 24 hours, signaling more upside expectations for the token. The cohort was net long on the XRP token, with a cumulative $49 million, but remained net short on the Solana (SOL) token, with $55 million worth of cumulative short positions on the decentralized exchange Hyperliquid.âXRP is holding near $2.30, showing relative stability but still feeling the effects of declining liquidity and cautious investor sentiment,â Ryan Lee, chief analyst at Bitget exchange, told Cointelegraph.âFor now, the setup looks like a healthy reset, not the end of the cycle, with both SOL and XRP well-positioned to lead the next wave once confidence snaps back.âMeanwhile, spot Bitcoin ETFs saw $866 million worth of negative outflows on Thursday, staging their second-worst day on record, after the $1.14 billion daily outflows on Feb. 25, 2025, according to Farside Investors.