Strong debut signals investor demand for altcoin ETFs in U.S. markets
New U.S. exchange-traded funds (ETFs) tracking XRP and Dogecoin recorded $54.7 million in first-day trading volume, far surpassing analyst forecasts and signaling strong investor appetite for alternative crypto products.
XRP ETF Records Biggest Day-One Volume of 2025
The REX-Osprey XRP ETF (XRPR) led the way with $37.7 million in trades, marking the largest day-one monetary volume for any ETF launched in 2025, according to Bloomberg ETF analyst Eric Balchunas.
“That is way more than I would have thought,” Balchunas noted on X, adding that the ETF’s early activity was five times higher than the debut of XRP futures ETFs.
Within its first 90 minutes, XRPR had already reached $24 million in trading volume, a level most analysts considered unlikely for a single-day performance.
Dogecoin ETF Also Outperforms Expectations
The REX-Osprey Dogecoin ETF (DOJE) also exceeded projections. Initially expected to generate around $2.5 million in volume, it surged to $17 million by market close.
“That’s shockingly solid,” Balchunas commented, noting that most new ETFs average less than $1 million on their first day. The strong debut places DOJE among the top five ETF launches out of more than 700 this year.
Regulatory Structure and Market Implications
Both XRPR and DOJE were filed under the Investment Company Act of 1940 (“40 Act”), a different structure from most Bitcoin and Ether ETFs, which fall under the Securities Act of 1933. While the 40 Act offers a faster approval process (75 days versus 240 days), it restricts how funds can hold assets.
Instead of directly holding XRP and DOGE, the ETFs invest through a Cayman Islands subsidiary and acquire shares of foreign exchange-traded products tracking the two cryptocurrencies.
Investor Interest Signals More Crypto ETFs Ahead
The debut success of these ETFs could pave the way for broader acceptance of altcoin-focused funds. Analysts suggest the performance shows growing institutional demand beyond Bitcoin and Ethereum.
With dozens of filings awaiting regulatory approval, the strong early momentum of XRPR and DOJE may encourage the Securities and Exchange Commission to accelerate approvals for additional crypto-linked ETFs.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.