Canary Capital XRP ETF Debut Sets Record With $250M Inflows
Background on the Canary Capital XRP ETF Debut
The launch of the Canary Capital XRP ETF signaled strong investor interest in altcoins, as the product posted the highest first-day performance among more than 900 exchange-traded fund (ETF) launches in 2025. According to Bloomberg ETF analyst Eric Balchunas, the Canary Capital XRP ETF closed its initial trading session with $58 million in trading volume, surpassing both cryptocurrency and traditional ETF debuts in performance metrics.
The XRP ETF attracted over $250 million in inflows on its first trading day, exceeding the inflows received by all other crypto ETFs launched during the same period. This performance has highlighted a renewed demand for XRP and other altcoins. Eric Balchunas shared these details in a Thursday update on X (formerly Twitter), reporting via Cointelegraph.
ETF Structure and SEC Approval
A significant factor contributing to the successful debut of the Canary Capital XRP ETF was its in-kind creation and redemption structure. ETF analyst Nate Geraci explained, “A few people asking how it’s possible to have ‘only’ $59mil trading volume, but nearly $250mil inflows… The answer? In-kind creations, which don’t show up in trading volume” (Geraci via Cointelegraph). This in-kind model allows ETF shares to be created and redeemed using XRP tokens instead of cash, making the process more efficient for cryptocurrency-based products.
The in-kind creation and redemption model for cryptocurrency ETFs was approved by the US Securities and Exchange Commission (SEC) on July 29, 2025. This regulatory change permits the direct exchange of ETF shares for the underlying asset, streamlining operations and reducing transaction costs for fund managers and investors.
Market Reaction and Altcoin Flows
The record-breaking debut inspired a wave of bullish sentiment among seasoned cryptocurrency traders, often referred to as “smart money.” According to monitoring data from crypto intelligence platform Nansen, these traders collectively added $44 million in net long XRP positions in 24 hours following the ETF launch, indicating a positive outlook for the token’s future performance.
Despite XRP’s strong showing, the trader cohort maintained net short positions totaling $55 million on Solana (SOL) through decentralized exchange Hyperliquid. At the same time, XRP held close to $2.30, maintaining “relative stability but still feeling the effects of declining liquidity and cautious investor sentiment,” said Ryan Lee, chief analyst at Bitget exchange, to Cointelegraph.
The broader market reflected shifting investor preferences. Spot Bitcoin ETFs experienced $866 million in net outflows on Thursday — their second-largest daily loss of funds in 2025, following February 25’s $1.14 billion outflow, according to figures reported by Farside Investors.
What’s Next for Cryptocurrency ETFs?
The Canary Capital XRP ETF’s unprecedented debut suggests increasing demand for altcoin-based tradable products, especially following regulatory approvals allowing for more flexible creation and redemption models. Market analysts will continue to track the ETF’s performance to assess whether it sustains investor inflows and if the success signals a wider shift in cryptocurrency investment patterns beyond Bitcoin.
As market conditions evolve, stakeholders will watch for further industry developments, including potential launches of ETFs tracking other major altcoins. For continuing coverage of cryptocurrency industry trends, visit Vizi’s cryptocurrency section.
