Rex-Osprey XRP ETF Debuts with $25M Volume Surge

The Rex-Osprey XRP ETF made its dramatic market debut on Thursday, immediately capturing investor attention with unprecedented trading activity. Within just 90 minutes of launching, the fund attracted approximately $25 million in trading volume, a figure that left Bloomberg Senior ETF Analyst Eric Balchunas in what he described as “semi-shock” on social media platform X. The volume significantly surpassed all expectations, particularly when compared to historical performance of XRP futures ETFs.

Balchunas provided crucial context, noting that the spot ETF’s initial volume was “5x more than any of the XRP futures ETFs did on day one” despite only tracking 90 minutes of trading rather than a full session. This explosive start demonstrates substantial pent-up demand for regulated XRP exposure among U.S. investors, who until now lacked direct access to spot XRP products through traditional exchange-traded vehicles.

Concurrent with the ETF launch, XRP’s price showed positive momentum, rising approximately 2% over a 24-hour period to reach $3.11 according to data from CoinGecko. The cryptocurrency, which ranks as the third-largest in the ecosystem, now sits about 15% below its July all-time high of $3.65. The price movement suggests that the ETF debut provided tangible market support rather than merely symbolic significance.

The Rex-Osprey XRP ETF employs an innovative structure distinct from the Bitcoin and Ethereum ETFs that launched last year. Rather than using the Securities Act of 1933, the fund was launched via the Investment Company Act of 1940 and offers exposure to XRP through a Cayman Islands-registered subsidiary wholly owned and controlled by the fund. This structure, also used by the simultaneously launched Dogecoin ETF (DOJE), represents a creative approach to regulatory compliance for altcoin investment products.

Thursday marked a landmark day for cryptocurrency ETFs beyond just XRP, as Rex Shares and Osprey Funds also launched the first-ever Dogecoin ETF. The DOJE ETF similarly impressed with nearly $6 million in trading volume during its first hour, dramatically exceeding Balchunas’s initial expectation of $2.5 million for the entire day. The analyst noted that this volume “destroyed” his projections, indicating stronger-than-anticipated interest in meme coin exposure through regulated channels.

The successful debut of both altcoin ETFs comes at a potentially transformative moment for the cryptocurrency ETF landscape. A Wednesday SEC order created generic listing standards for commodity-based funds, potentially paving the way for more altcoin ETFs in the near future. This regulatory development, combined with the strong investor reception to the XRP and Dogecoin products, suggests that the market may see expanded cryptocurrency ETF options beyond the dominant Bitcoin and Ethereum offerings.

Market sentiment surrounding XRP appears increasingly bullish following the ETF launch. Data from Myriad, a product of DASTAN (Decrypt’s parent company), indicates that 60% of users believe XRP is headed to $4—which would represent a new all-time high—rather than falling to $2. This optimistic outlook has grown stronger over the past two weeks, suggesting that investor confidence is building around both the cryptocurrency’s fundamentals and its newly available investment vehicles.

The combination of regulatory progress, innovative product structures, and strong investor demand creates a compelling narrative for XRP’s continued growth. As the native token of the XRP Ledger blockchain—a network specifically designed for institutional and banking money movement—XRP stands to benefit from both speculative investment through products like the ETF and potential adoption by the financial institutions it was built to serve.