Record-breaking launch of XRP Exchange-Traded Fund (ETF)
The crypto market witnessed a significant event this week with the launch of the REX-Osprey XRP ETF (XRPR) and the REX-Osprey DOGE ETF (DOJE). Both ETFs had a strong showing, setting new records and indicating a growing interest from investors in regulated and easily accessible ways to invest in altcoins.
The XRPR ETF, in particular, had a record-breaking debut, with a trading volume of $37.7 million on its first day. This figure is five times higher than previous XRP futures ETFs in the first 90 minutes alone, catapulting XRPR to the top of the rankings among the 710 ETF launches this year. Shares worth $24 million changed hands in the first 90 minutes of XRPR trading.
DOJE also secured a spot among the top 5 most successful ETF launches of the year, with a trading volume of around $17 million.
The U.S. securities regulator, the SEC, approved new standards on Wednesday that will allow for faster approval of crypto ETFs. This decision is expected to pave the way for up to 50 new crypto-ETFs next year, according to Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence. Balchunas also noted that the trading volume of both XRPR and DOJE on their first day is 'shockingly solid,' as most ETFs trade under a million dollars on their first day.
The strong start of the XRPR and DOJE ETFs is considered a bullish signal for the entire sector. Balchunas predicts there's a good chance of over 100 new crypto ETFs next year.
The Bitcoin Report, a newsletter by crypto and blockchain experts Steffen Härtl and Nikolas Kessler, identifies the 9 strongest-trending cryptocurrencies worldwide using the Trend-Signal-Indicator system (TSI). However, it's important to note that the XRPR and DOJE ETFs are not directly related to the Bitcoin Report newsletter or its model portfolio.
Despite the strong interest in the new ETFs, the prices of XRP and Dogecoin haven't reacted yet. However, even if the prices haven't reacted yet, the now-starting ETF wave could bring fresh capital and new momentum to the entire crypto market in the long run.
The institution that approved on Wednesday to expedite the approval process for crypto-ETFs is the BaFin (Federal Financial Supervisory Authority of Germany). More info about the Bitcoin Report newsletter can be found here.
In conclusion, the successful launch of the XRPR and DOJE ETFs is a clear sign for the future, as more ETFs are expected to come to market soon. This could potentially bring fresh capital and new momentum to the crypto market, signaling a bright future for this rapidly evolving sector.
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