- The Canary Capital XRP exchange-traded fund (ETF) had the strongest first-day performance among over 900 ETFs in 2025.
- The ETF recorded $58 million in trading volume and attracted over $250 million in inflows on its initial day.
- The fund uses an in-kind creation and redemption model allowing exchange of ETF shares for XRP tokens, a structure approved by the US SEC in July 2025.
- After the ETF launch, notable traders increased net long XRP positions by $44 million, indicating bullish sentiment.
- Meanwhile, spot Bitcoin ETFs experienced significant outflows, totaling $866 million on the day following the ETF debut.
The Canary Capital XRP exchange-traded fund (ETF) debuted in 2025 with remarkable success, marking the strongest first-day showing out of more than 900 ETFs launched this year. The ETF closed its initial trading day with approximately $58 million in trading volume and attracted over $250 million in inflows, surpassing all other crypto and traditional ETFs, according to data cited by Bloomberg ETF analyst Eric Balchunas.
This ETF utilizes an in-kind creation and redemption mechanism, which allows ETF shares to be created or redeemed through the underlying asset, XRP tokens, rather than cash transactions. According to ETF analyst Nate Geraci, this model explains the difference between trading volume and inflows since in-kind creations do not appear in trading volume figures. The US Securities and Exchange Commission (SEC) approved the in-kind creation and redemption process for cryptocurrency ETFs on July 29, 2025.
Following the launch, the crypto intelligence platform Nansen reported that prominent traders, classified as “smart money,” increased net long XRP positions by $44 million within 24 hours. This move reflects growing positive expectations for the XRP token. These traders currently hold $49 million in net long positions on XRP but maintain $55 million in net short positions on Solana (SOL) on the Hyperliquid decentralized exchange.
Ryan Lee, chief analyst at Bitget exchange, noted that XRP is maintaining relative stability near $2.30 amid reduced liquidity and cautious investor sentiment. He described the situation as “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.”
In contrast, spot Bitcoin ETFs experienced substantial negative outflows totaling $866 million on the same day, marking their second-largest outflow day after the $1.14 billion outflows on February 25, 2025, as reported by Farside Investors.
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