XRP ETF Nets $250M Inflows, Triggers Altcoin Rotation
Canary Capital’s XRP ETF kicked off with $250 million in first-day inflows, marking the strongest debut among over 900 ETFs launched in 2025. The fund recorded $58 million in trading volume and leveraged an SEC-approved in-kind creation model, enabling direct share-for-XRP token exchanges and drawing large inflows without inflating volume figures.
Smart-money investors swiftly rotated into XRP longs after the launch. Data from Nansen shows they added $44 million in net long positions within 24 hours, bringing total XRP longs to $49 million and holding $55 million in net shorts on Solana (SOL). Bitget analyst Ryan Lee described the price move as a “healthy reset,” positioning XRP for a potential next wave.
In contrast, spot Bitcoin ETFs saw a massive $866 million outflow—one of the largest single-day reversals on record. This divergence reflects a shift from Bitcoin ETF investments toward altcoins and crypto ETFs like the XRP ETF. The success of Canary Capital’s ETF underscores renewed demand for decentralized tokens beyond Bitcoin and could signal a broader bullish rotation across the crypto ETF sector.
Bullish
The strong $250 million inflows into the XRP ETF and the immediate smart-money shift into net long positions point to upward pressure on XRP’s price in the short term. The SEC-approved in-kind creation model enhances liquidity by allowing direct token exchanges, reducing selling pressure that typical cash creations might trigger. Over the longer term, the ETF’s robust debut and institutional-grade structure could foster sustained confidence in XRP, supporting continued demand and a bullish trajectory. Concurrent outflows from Bitcoin ETFs further amplify this positive dynamic by reallocating funds toward altcoins like XRP.