Canary Capital’s XRP ETF made a historic debut on Thursday, outpacing competitors by reaching $58 million in trading volume on its first day, setting a record for the most traded ETF launch this year. Bloomberg expert Eric Balchunas praised this achievement on X (formerly Twitter), emphasizing the XRP ETF’s impressive market success.
The launch of the first U.S. XRP ETF earlier in the day significantly influenced XRP’s price, pushing it toward the key $2.5 mark. However, the token later retraced by 4%, settling at a current trading price of $2.3.
Canary Capital’s CEO, Steven McClur, recently voiced optimism about the XRP ETF’s potential, believing it could surpass Solana’s (SOL) performance. He pointed to XRP’s strong liquidity and global utility, predicting a substantial inflow of institutional investment soon. Indeed, Canary’s XRP ETF has already outperformed Bitwise’s Solana Staking ETF, with the latter’s $57 million volume just $1 million short of Canary’s fund.
Analysts forecast that approvals for asset managers such as Franklin Templeton, Bitwise, and Grayscale in November could draw $4 to $8 billion in institutional investments. Given the market’s low liquidity, this could trigger a significant price surge. Market experts anticipate a bullish rally for XRP, suggesting the token may be nearing the end of its consolidation phase. They project long-term price targets between $10 and $37.
If these optimistic predictions come true, XRP could reach new all-time highs, with potential gains of 334% and an impressive 1,500% from current levels.
In addition to Canary Capital’s ETF debut, analysts like Dark Defender have provided technical insights that could support the XRP ETF market’s performance. Dark Defender noted weekly signals pointing to a possible surge, with resistance at $2.85, support at $2.22, and targets of $18.22 and $36.76.
Geoffrey Kendrick of Standard Chartered expects significant gains in the coming years, largely due to the potential of spot XRP ETFs. He has set a 2028 target price of $12.50, implying 73% annual returns.
Motley Fool analysts have also commented, comparing XRP’s potential to Bitcoin’s price rise after the SEC approved spot Bitcoin ETFs in January 2024. They project a 150% increase for XRP to $6 by 2030.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about the news of an XRP ETF breaking launch records
Beginner Definition Questions
1 What is an XRP ETF
An XRP ETF is an investment fund that tracks the price of XRP Instead of buying XRP directly on a crypto exchange you can buy shares of this ETF through a traditional stock brokerage just like you would with a stock
2 What does Breaks Launch Record Outshining 900 Rivals mean
It means that on its first day of trading this specific XRP ETF attracted more investment money than any other new ETF that launched at the same time It was the most popular and successful launch of the bunch
3 Why is the launch of an XRP ETF a big deal
Its a big deal because it makes investing in XRP much easier and more accessible for the average person It also signals that major financial institutions have confidence in XRP lending it more legitimacy in the traditional finance world
Benefits Impact Questions
4 What are the main benefits of investing in an XRP ETF instead of buying XRP directly
Ease Familiarity You can use your existing stock brokerage account
Regulation Security The ETF is regulated by financial authorities which some investors find safer than holding crypto on an exchange
No Wallets Needed You dont need to manage a private crypto wallet or seed phrases
5 How does a successful ETF launch help the price of XRP
A successful launch creates huge new demand for XRP as the ETF provider has to buy large amounts of XRP to back the funds shares This increased buying pressure can positively impact the price
6 Does this mean XRP is now more accepted by regulators
The approval of the ETF itself is a strong positive signal suggesting regulators are becoming more comfortable with the asset However it doesnt mean all regulatory questions around XRP are completely resolved
Common Problems Risks
7 What are the risks of investing in an XRP ETF
You are still exposed to the price volatility of XRP If the price of XRP goes down the value of your ETF shares will also go down Additionally ETFs charge management