- Osprey’s XRPR ETF reached $24 million in trading volume within 90 minutes, outpacing XRP futures ETFs.
- The ETF holds a mix of XRP-related assets, with 59% in CME’s CF XRP-Dollar Reference Rate and 39% in CoinShares’ product.
- The launch of Dogecoin’s ETF shows the growing trend of mainstream acceptance for digital asset ETFs, including meme coins.
Trading has officially begun for the first U.S. exchange-traded fund (ETF) offering direct exposure to XRP. Listed on the Chicago Board Options Exchange (CBOE) under the ticker XRPR, the Osprey REX fund started at $25.80, slightly above its net asset value (NAV) of $25. While the ETF began on a small scale, it set a significant precedent, providing regulated access to XRP via standard brokerage accounts.
The first 90 minutes of trading XRP volume amounted to an impressive 24 million dollars. This was five times more than all the XRP futures-based ETFs combined on their initial day of launch. Although the ETF had a humble initial debut, it showed great interest among the investors, which indicated that there is a desire to have a regulated exposure to XRP.
Fund Structure and Asset Allocation
The XRPR ETF’s holdings are diversified between different XRP-related assets. Approximately 59% of its portfolio is made up of the CME’s CF XRP-Dollar Reference Rate, while 39% is invested in CoinShares’ Physical XRP product. The remaining portion consists of a small cash balance. This structure ensures that the fund’s price remains slightly detached from XRP’s price on crypto exchanges, with shares trading between $25 and $26, even though XRP’s market price is $3.11.
The first-ever Dogecoin ETF (DOJE) also began with considerable early success in the United States, in addition to the XRP ETF. DOJE exceeded 6 million volume in its first hour of trading, which is an impressive volatility given that most ETFs have trouble hitting 1 million volume on the opening day. This positive debut also indicates increased attention to exchange-traded funds based on crypto.
The Effect of Breaking Down the XRP ETF.
The introduction of the XRP ETF is a breakthrough in the cryptocurrency market, since it offers investors a regulated and mainstream investment opportunity that allows individuals to have exposure to XRP. The performance of this ETF indicates that more of the market has embraced the idea of digital assets, despite the absence of heavy participants in Wall Street, such as BlackRock.
Besides the breakthrough of XRP, the fact that Dogecoin has become a regulated financial product, instead of a meme cryptocurrency, is another step in solidifying the space as a legitimate one. Both ETFs have already been successful at the start, thus signifying that there remains a greater opportunity to expand the digital asset investment market, and investors are anticipating new options.
