Canary XRP ETF Targets $400 Million – Could 'First Mover Advantage' Increase Price?

Canary XRP ETF eyes $400 mln - Will 'first mover advantage' boost XRP?

Summary:
XRP has gained significant interest from institutional investors, driven largely by the launch of several spot ETFs, including the XRPC from Canary Capital, which has attracted $336 million in assets under management. The performance of these ETFs may influence the price of XRP, although market sentiment remains mixed.

Key Takeaways:

Canary Capital's XRPC ETF has reached $336 million in assets under management.
Four spot XRP ETFs are currently available in the U.S., collectively attracting nearly $700 million since their launch.
Market sentiment is mixed, and futures traders are adopting a cautious approach while hedging against potential price declines.
Heavy demand for put options suggests a bearish sentiment, with minimal expectation of a price surge above $3.

XRP ETFs Approach $1 Billion in Total Inflows

As of the latest updates, there are four active spot XRP ETFs in the U.S., which include Grayscale’s GXRP, Franklin Templeton’s XRPZ, Bitwise’s XRP, and Canary’s XRPC. Since their introduction in mid-November, these products have pulled in almost $700 million in total inflows without experiencing any net outflows.

XRP ETFs

The total net assets of these ETFs have surged to approximately $687 million, and if the current trend of institutional interest continues, the total could surpass $1 billion by the end of the year. Nate Geraci, Co-Founder of the ETF Institute, attributes Canary's success to the 'first-mover' advantage, noting that XRPC is now larger than all other spot XRP ETFs combined.

Institutional Flows and XRP Market Impact

Despite the positive inflows, market sentiment has remained mixed post-launch of the ETFs. Notably, funding rates turned positive in late November, but they have fluctuated between positive and negative recently. This indicates that futures traders were initially optimistic, but have shifted to a more neutral stance, waiting to see how the market reacts to upcoming Federal Reserve rate decisions.

XRP ETF

Year-End XRP Price Projections

Interestingly, large players in the Options markets are demonstrating significant hedging activity, particularly against potential downward price movements to $2.00 or $1.80. The Put/Call Ratio is currently at 1.81, indicating a larger preference for bearish bets compared to bullish ones.

XRP ETF

Moreover, market participants are not anticipating a drastic price increase above $3 in December, with current pricing reflecting only a 7% probability for such a scenario.

XRP ETF

Conclusion

In summary, while the launch of spot XRP ETFs has attracted significant institutional interest and inflows, the market sentiment remains cautious. As traders monitor developments, especially surrounding the Federal Reserve's decisions, the focus will be on how these factors could influence the price of XRP moving forward.