XRP ETF and DOGE ETF Unleash Remarkable $54M Debut, Shattering Expectations

The cryptocurrency market recently witnessed a significant milestone. New exchange-traded funds (ETFs) tracking XRP and Dogecoin launched with remarkable success. These innovative Crypto ETFs achieved a combined trading volume of $54 million on their debut. This performance far exceeded analyst expectations, signaling robust investor interest in altcoin-backed financial products.

XRP and DOGE ETFs Shatter Expectations

REX Shares and Osprey Funds introduced these novel XRP ETF and DOGE ETF products. On their first day, these funds attracted substantial investor capital. Bloomberg ETF analyst Eric Balchunas commented on their exceptional performance. He noted that most new ETFs typically see around $1 million in trading volume. However, these crypto funds were “no slouch,” collectively generating $54.7 million in trades. This impressive debut highlights growing mainstream acceptance for digital assets beyond Bitcoin and Ethereum.

XRPR Leads with Strong XRP Demand

The REX-Osprey XRP ETF (XRPR) demonstrated particularly strong demand. This fund tracks the price of XRP, the third-largest cryptocurrency. XRPR alone recorded an impressive $37.7 million in volume. Data from Balchunas and Cboe confirmed these figures. Balchunas even called it the “biggest day one” for any 2025 launch by monetary volume. Within its first 90 minutes, the ETF accumulated $24 million in volume. This far surpassed initial projections. He remarked, “That is way more than I would have thought.” For context, this volume was five times greater than any XRP futures ETFs achieved on their first day.

Dogecoin ETF Shows Shocking Solidity

The REX-Osprey DOGE ETF (DOJE) also delivered a surprisingly strong showing. Earlier, Balchunas anticipated a $2.5 million volume for the Dogecoin-tracking fund. He considered this a respectable, though not exceptional, figure. Yet, the ETF quickly shattered this expectation. It neared $6 million in volume within its first hour of trading. Balchunas described its performance as “shockingly solid.” He further noted that most ETFs trade under $1 million on their first day. DOJE concluded its debut with $17 million in volume. This places it among the top five ETF launches of the year, out of over 700 new funds.

Navigating Regulatory Frameworks for Crypto ETFs

These new Crypto ETFs operate under a different regulatory framework. REX and Osprey filed them under the Investment Company Act of 1940, known as the “40 Act.” Most existing crypto-tied exchange-traded products, like Bitcoin and Ether funds, launched under the Securities Act of 1933, or the “33 Act.” The 40 Act offers a faster approval window of 75 days. This contrasts with the 33 Act’s 240-day process. However, the 40 Act comes with specific limitations. For instance, XRPR and DOJE do not directly hold crypto assets. Instead, they invest in a Cayman Islands-based subsidiary that holds the crypto. They also acquire shares in foreign exchange-traded products from Europe and Canada. These products track XRP and Dogecoin prices. Balchunas initially thought the 40 Act registration might reduce investor interest. However, the debut volumes proved otherwise, demonstrating strong demand despite these structural differences.

Future Outlook for Altcoin-Backed Products

The success of these initial XRP ETF and DOGE ETF launches bodes well for the future. Many pending crypto funds, including additional XRP and Dogecoin products, await regulatory approval. The Securities and Exchange Commission (SEC) recently approved new ETF listing standards. This development could potentially accelerate the approval process for more crypto-related funds. Investor enthusiasm for these products remains high. This trend suggests a growing appetite for diversified exposure to the digital asset market. As a result, the landscape for altcoin-backed financial instruments continues to evolve rapidly. This marks a significant step towards broader institutional adoption within the crypto space.