Crypto Exchange-Traded Funds (ETFs) are reaching new heights as the first Dogecoin and Rex-Osprey XRP ETFs performed exceptionally well following their debut. On September 18, both the XRP spot ETF (XRPR) and the Dogecoin ETF (DOJE ) were launched, driving their trading volume to a total of $54.7 million!
The blockbuster debut of XRP, Dogecoin ETFs
The high trading volume of XRP and Dogecoin ETFs tells the crypto world something unique; most ETFs typically see about $1 million in trading volume on their first day. However, the new ETFs have far outperformed this average volume, as Bloomberg analyst Eric Balchunas noted.
Dogecoin ETF might not draw investor interest: Eric Balchunas
On day one, DOJE experienced $2.5 million in trading volume. However, DOJE might not draw much investor interest when compared to other high-profile crypto ETFs. As Eric Balchunas stated, the Dogecoin ETF is a 40 Act fund, meaning it depends on indirect exposure to Dogecoin, and this might make it less alluring for hardcore crypto investors. Moreover, the fund is not issued by a major asset manager, which can make it harder for smaller issuers to gain investor trust.
XRPR trades $37.7 million, DOJE covers $17 million
XRP ETF, XRPR, traded around a staggering $37.7 million on day one, whereas DOJE’s trading volume touched nearly $17 million.
Reasons for high trading volume
ETFs, as explained, are spontaneously growing in demand. Many investors flow into the ecosystem, buying ETF shares without requiring direct buy and storing cryptocurrency — that is the idea behind ETFs.
Novel ETFs attract more investors
Being the first ETFs, both XRPR and DOJE have gained investors, institutions, and speculators who are eagerly looking to access crypto assets in a regulated environment.
Increased community demand
Strong community and retail investors have flocked to the ETFs. Specifically, XRP has been going through a regulatory journey with the US SEC, and Dogecoin has a memeatic culture boosted by prominent figures like Elon Musk.
Accessibility through TradFi
Investors can directly access ETFs from regulated traditional finance without opening crypto wallets. They find this as an advantage to easily be exposed to crypto shares without actually owning the whole coin.
The launch of XRP and Dogecoin ETFs shows that crypto’s move into traditional finance is more than just symbolic. Surging volumes, strong communities, and easier access to crypto have made these ETFs important in the eyes of many investors. Also, these debut ETFs signal a new era where memes and mainstream utility collide on Wall Street.
