XRP and Dogecoin ETFs Launch to Record Trading Activity
The latest crypto exchange-traded funds (ETFs) focused on XRP and Dogecoin launched on Thursday, setting new records for first-day trading volumes in 2024. The funds, listed under tickers XRPR and DOJE, saw substantial investor engagement, reflecting heightened interest in regulated crypto investment options.
Strong Debut for XRPR and DOJE
- XRPR closed its first day with $37.7 million in trading volume, the highest among 710 ETF launches this year, according to Bloomberg.
- DOJE reached $17 million in volume, ranking within the top five ETF debuts year-to-date.
Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, highlighted the strong performance as a positive indicator for the growing pipeline of crypto ETFs. Notably, XRPR traded $24 million in its first 90 minutesfive times higher than any previous XRP futures ETF at launch. DOJE posted nearly $6 million during its initial hour, significantly above the typical day-one ETF trading activity.
Regulatory Context and Market Implications
Rex Shares and Osprey, the firms behind the new ETFs, registered the products under the Investment Company Act of 1940. This law governs investment funds pooling capital for shared investment strategies. While these ETFs are required to hold the underlying tokens directly, their structures also allow for additional exposure via foreign spot ETFs or similar instruments if necessary.
The launches came a day after the U.S. Securities and Exchange Commission announced measures to expedite crypto ETF listings. Analysts now expect the number of crypto-focused ETFs in the U.S. to exceed 100 within the next year.
Stable Prices for Underlying Tokens
- XRP price held steady at $3.08 over the past 24 hours.
- Dogecoin dipped modestly, down 0.5% to $0.28 at market close.
The strong debut of these ETFs is viewed as another step toward mainstream adoption of crypto assets in regulated markets, even as underlying token prices remained stable. Market observers will watch for sustained investor interest as additional funds launch throughout the year.
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