What to Know:
- The Canary Capital XRP ETF (XRPC) has launched, sparking discussion about potential XRP purchases by the issuer.
- XRPC’s debut was strong, with significant trading volume and net inflows, outperforming many other ETFs.
- Despite the ETF launch, XRP’s price has not immediately reacted, possibly due to over-the-counter (OTC) asset sourcing.
The launch of the Canary Capital XRP ETF (XRPC) has ignited speculation within the XRP community, particularly regarding the potential impact on XRP’s price. The ETF’s impressive first-day inflows have led to discussions about how much XRP the issuer, Canary Capital, might need to acquire. This development signals growing institutional interest in XRP and its potential as a mainstream investment asset.
Canary Capital celebrated a successful launch, reporting substantial trading volume and net inflows, leading crypto analyst Alex Cobb to speculate on the immediate need for XRP purchases. Spot ETFs typically require holding the underlying asset, meaning significant inflows often translate into real purchases. However, large funds often source assets through OTC liquidity providers to minimize slippage and avoid impacting public exchange prices.
XRPC’s debut ranks among the most successful ETF launches of the year, surpassing several other crypto ETFs in initial performance. Ripple CEO Brad Garlinghouse hailed the launch as a long-awaited milestone, reflecting confidence in the eventual arrival of an XRP ETF in the U.S. market. This institutional endorsement underscores the growing acceptance and maturity of XRP as a digital asset.
Despite the ETF’s strong start, XRP’s price experienced a slight decline on the launch day, leading to questions within the community. The discrepancy between ETF inflows and price movement could be attributed to OTC asset sourcing, which might not immediately reflect on spot market prices. Analysts are also modeling the potential impact of future XRP ETFs, estimating significant daily inflows if other planned ETFs mirror XRPC’s performance.
The launch of the Canary Capital XRP ETF represents a significant step forward for XRP, signaling increased institutional interest and potential for wider adoption. While immediate price impacts may be muted due to asset sourcing methods, the long-term implications of a successful XRP ETF could be substantial. Investors will be watching closely to see how this development shapes the future of XRP and the broader crypto market.
Source: Original article
