The debut of Canary Capital’s XRP exchange-traded fund (ETF) signals renewed demand for altcoins after the fund posted the best first-day performance among more than 900 ETFs launched in 2025.
Canary Capital’s XRP ETF (XRP) closed its first day with $58 million in trading volume, marking the most successful ETF debut of 2025 among both crypto and conventional ETFs, Bloomberg ETF analyst Eric Balchunas said in Thursday’s X issue post.
The fresh fund raised more than $250 million in inflows on its first trading day, outpacing recent inflows of all other cryptocurrency ETFs.
According to ETF analyst Nate Geraci, one of the reasons for the successful launch was the ETF’s in-kind creation model.
“Several people ask how it is possible that the trading volume is “only” $59 million, but the inflows are almost $250 million… The answer? Material creations that do not appear in the trading volume,” Geraci wrote in Thursday’s issue of X post.
The in-kind redemption model allows ETF shares to be created and redeemed through the underlying assets, as opposed to cash-only transaction models. In this case, Canary Capital ETF shares can be exchanged for XRP tokens.
As Cointelegraph reported at the time, the US Securities and Exchange Commission (SEC) approved the creation and redemption of in-kind cryptocurrency ETFs on July 29.
Intelligent cash investors are going long XRP after the ETF debuts
The ETF’s launch has inspired a bullish rotation among the industry’s most successful traders, which are tracked by returns and marked on the crypto intelligence platform as “shrewd money” traders. Nansen.
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Smart money investors added $44 million worth of net long XRP positions in the last 24 hours, signaling greater expectations for the token.
The cohort was net long the XRP token, with a cumulative short position of $49 million, but remained short the Solana token (SOL), with a cumulative short position of $55 million on the decentralized exchange Hyperliquid.
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“XRP remains near $2.30, showing relative stability but still feeling the effects of declining liquidity and cautious investor sentiment,” Ryan Lee, chief analyst at Bitget exchange, told Cointelegraph.
“For now, the setup looks like a healthy reset rather than the end of a cycle, with both SOL and XRP well-positioned to lead the next wave when confidence returns.”
Spot Bitcoin ETFs reported negative outflows of $866 million on Thursday, the second-worst day on record, following daily outflows of $1.14 billion on February 25, 2025, According to for investors from Farside.
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