Key Highlights
- Canary Capital’s XRP ETF had the strongest 2025 debut, with $58M in trading volume and $250M in inflows.
- Smart money traders added $44M in net long XRP positions after the launch.
- The ETF attracted strong retail and institutional demand, supported by in-kind creation and redemption.
The Canary Capital XRP exchange-traded fund (ETF) launched on Thursday, Nov 14, and had the strongest first-day among more than 900 ETFs launched in 2025. The fund closed its first sessions with $58 million in trading volume and received over $250 million in inflow from investors.
This ETF allows investors gain exposure to XRP tokens through an in-kind creation and redemption model approved by the U.S. Securities and Exchange Commission (SEC) on July 29, 2025. Bloomberg ETF analyst Eric Balchunas highlighted the debut as the year’s top ETF launch in a X post yesterday.
In-Kind Creation Made the Launch Stand Out
The in-kind system allows ETF shares to be swapped directly for XRP tokens instead of using only cash. This explains why the fund had higher inflows than its trading volume.
“A few people asking how it’s possible to have ‘only’ $59mil trading volume, but nearly $250mil inflows… The answer? In-kind creations, which don’t show up in trading volume.” ETF expert Nate Geraci wrote in a tweet on X.
Following the launch, “smart money” traders added $44 million in net long XRP positions in the past 24 hours, according to the crypto intelligence platform Nansen. These traders are still betting against Solana, holding $55 million in net short positions on the Hyperliquid exchange.
The ETF opened at $24.55 and ended the day down 7.8% after a volatile session. During that period, the overall crypto markets fell, with total market value dropping 3.5% to $3.43 trillion. Bitcoin went down 3.89%, Ether dropped 3.38%, and Solana lost about 5% to $143. The ETF attracted more inflows than analysts initially projected, with Balchunas noting that he expected $17 million but the fund exceeded that within half an hour.
Retail and institutional Demand Push XRP Higher
Min Jung, senior analyst at Presto in a statement said that “XRP has one of the strongest and most persistent retail communities in crypto… On the institutional side, there has been clear pent-up demand for compliant XRP exposure following Ripple’s regulatory wins.” Lawrence Samantha, CEO of NOBI, added, “If XRPC continues to see steady inflows and creations, it could be a strong sign for how institutions are treating this as a long-term allocation.”
At the time of writing, XRP is trading for $2.32, down 3.71 in the last 24 hours due to the overall market drop.
The ETF also attracted professional investors who previously avoided crypto. A meaningful portion of the early inflows came from liquidity providers managing creation and redemption baskets and traders capturing short-term premiums or discounts.
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