The launch of Canary Capital’s XRP exchange-traded fund (ETF) is signaling renewed investor interest in altcoins, as the fund posted the strongest first-day performance of any ETF in 2025.

On its debut, the XRP ETF closed with $58 million in trading volume while attracting over $250 million in inflows, surpassing the first-day performance of all other crypto and traditional ETFs launched this year, according to Bloomberg ETF analyst Eric Balchunas.

Analysts attribute part of the success to the ETF’s in-kind creation and redemption model, which allows ETF shares to be exchanged directly for XRP tokens rather than relying on cash transactions. “A few people asking how it’s possible to have ‘only’ $59 million trading volume but nearly $250 million inflows… The answer? In-kind creations,” noted ETF analyst Nate Geraci. The U.S. Securities and Exchange Commission (SEC) approved in-kind creation and redemption for cryptocurrency ETFs in July 2025.

The debut has also influenced trading behavior among so-called “smart money” investors. Data from crypto analytics platform Nansen shows that these top traders added $44 million in net long XRP positions over 24 hours, signaling expectations of further upside. Currently, XRP is holding around $2.30, reflecting relative stability despite cautious market sentiment.

Ryan Lee, chief analyst at Bitget, said, “For now, the setup looks like a healthy reset, not the end of the cycle, with both SOL and XRP well-positioned to lead the next wave once confidence snaps back.”

Meanwhile, spot Bitcoin ETFs saw $866 million in outflows on Thursday, marking their second-worst day ever, after $1.14 billion in outflows on February 25, 2025. The contrasting movements highlight shifting investor preferences, with altcoins benefiting from targeted investment vehicles like the new XRP ETF.