Canary Capital’s XRP ETF Sees Record-Breaking Debut with $250M In-Kind Redemptions
The debut of exchange-traded fund (ETF) Canary Capital has made a significant impact in the financial market, with its XRP (XRP) ETF closing its first day with $58 million in trading volume. According to Bloomberg ETF analyst Eric Balchunas, this marks the best-performing ETF debut of 2025 among both crypto and traditional ETFs. The new fund recorded over $250 million in inflows on its first day of trading, surpassing the recent inflows of all other crypto ETFs.
One of the key factors contributing to the successful launch was the ETF’s real value creation model, as noted by ETF analyst Nate Geraci. Geraci explained that the in-kind redemption model, unlike pure cash transaction models, allows the creation and redemption of ETF shares via the underlying asset. In this case, Canary Capital’s ETF shares can be exchanged for XRP tokens. 
The U.S. Securities and Exchange Commission (SEC) approved the creation and redemption of in-kind cryptocurrency ETFs on July 29, as reported by Cointelegraph. 
Smart Money Traders Move into XRP Longs After ETF Debut
The ETF’s launch has sparked a bullish rotation among the industry’s most successful traders, who are tracked by returns and dubbed “smart money” traders on crypto intelligence platform Nansen. Smart money traders have added $44 million worth of net long XRP positions in the last 24 hours, indicating further upside expectations for the token. 
According to Ryan Lee, chief analyst at Bitget exchange, “XRP is holding near $2.30, showing relative stability, but still feeling the impact of declining liquidity and cautious investor sentiment.” Lee added, “For now, it looks like a healthy restart rather than the end of the cycle, as both SOL and XRP are well positioned to lead the next wave once confidence returns.” In contrast, spot Bitcoin ETFs recorded $866 million worth of negative outflows on Thursday, marking their second-worst day on record, behind the $1.14 billion in daily outflows on February 25, 2025.
For more information on the Canary XRP ETF and its record-breaking launch, visit Cointelegraph.
