Rise in XRP as First U.S. Exchange-Traded Fund Experiences Strong Demand
In a significant move for the cryptocurrency market, two new exchange-traded funds (ETFs) have made their debut, offering investors exposure to Ripple's XRP and Dogecoin.
The Rex-Osprey XRP ETF, the first of its kind, hit the stock market on Thursday, attracting a surprising volume of trading. According to Bloomberg Senior ETF Analyst Eric Balchunas, the ETF saw close to $25 million in trading volume within just 90 minutes of its launch, significantly surpassing the volume of XRP Futures ETFs at that time. By the end of the first day, the total trading volume reached an impressive $37.7 million.
Balchunas expressed his surprise at the volume, comparing it to that of XRP futures ETFs, stating that it was 5 times more than what XRP futures ETFs saw on their first day of trading. He also noted that the Rex-Osprey XRP ETF's trading volume exceeded $24 million within the first 90 minutes after its launch.
The DOJE ETF, which provides exposure to Dogecoin, also had a strong debut. CoinGecko data shows that the price of Dogecoin has surged on the DOJE ETF's trading. The Dogecoin ETF was launched via the Investment Company Act of 1940 by Rex-Osprey.
The SEC's creation of generic listing standards for commodity-based funds may lead to more ETFs for altcoins and others soon. This could be a game-changer for the cryptocurrency market, providing more opportunities for investors to diversify their stock market today portfolios.
Interestingly, a product of DASTAN, Decrypt's parent company, Myriad, has been tracking the sentiment of its users regarding XRP. 60% of Myriad users believe that XRP is headed to $4, with odds growing over the last two weeks. Some users even believe that XRP is more likely to rise to a new all-time high price of $4 than to fall to $2.
The Rex-Osprey XRP ETF is unique as it is the first to give investors exposure to the Ripple-linked asset. XRP, the third-largest cryptocurrency in the ecosystem, currently stands at $3.11, having risen approximately 2% over a 24-hour period.
The DOJE ETF, on the other hand, offers investors exposure to Dogecoin via a subsidiary registered in the Cayman Islands that is wholly owned and controlled by the fund.
Balchunas also commented on the DOJE ETF, stating that it attracted nearly $6 million in trading volume in the first hour of trading, which was more than his expectation of $2.5 million for the day.
These developments in the cryptocurrency market are a testament to the growing interest and acceptance of digital assets by traditional financial institutions. As more ETFs are launched, we can expect to see more opportunities for investors to invest in the cryptocurrency market.
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