Ripple XRP exchange-traded funds (ETFs) saw a surge in volume on July 11, following the market rally that pushed close to $3. Bloomberg senior analyst Eric Balchunas shared the data on X, noting that the ETFs are seeing around 4x to 5x their normal volume.
According to Balchunas, the XRP ETF with the most volume growth was the newly launched 2x XXRP ETF. The leveraged XRP Futures product saw its value increase by 27% in the past 24 hours while closing the week with a 55% gain.
XXRP ETF performance and volume (Source: Eric Balchunas)
The price gains were also matched by a rise in volume, with a product seeing $120 million in trading volume for the week, its highest since launching. Teucrium launched the 2x Long Daily XRP ETF on April 8 on the NYSE Arca, a move Balchunas said they are getting a reward for.
The nature of the XXRP might have also contributed to its performance, with the product leveraged format ensuring it is a high-risk, high-reward product with potential for massive gains when the price of XRP increases substantially.
Interestingly, XXRP now has assets under management (AUM) of $163.5 million, more than the combined value of all the other funds launched by the Vermont-based asset manager. Balchunas added that this is the first time in ETF history that a 2x product will launch before there is even a 1x product in the market.
XRP performance driving ETF volume
Meanwhile, XRP’s positive performance has been the key factor for the growth in volume and value of the ETFs tied to the token. XRP has been one of the top-performing altcoins this year, proving resilient with minimal decline even when other major cap tokens such as ETH and SOL fell significantly.
Its recent gains of 7% in the last 24 hours and almost 25% in one week now mean its year-to-date performance is back in the green. According to CoinMarketCap, XRP is now up 19.48% this year at $2.77.
This puts it at similar levels with Bitcoin, up 24% and Tron TRX with almost 20% gains. Other major cap tokens, including BNB, ETH, SOL, ADA, and DOGE, remain down compared to their value at the start of the year, even after their recent gains.
Interestingly, XRP is not the only Ripple-linked token that has been high-flying recently. Ripple stablecoin RLUSD has surpassed $500 million in supply for the first time in just eight months of its launch.
Per DeFiLlama data, RLUSD is now ranked 16th on the list of top stablecoins, ahead of popular names such as True USD (TUSD), Aave GHO, and USDD. Its supply has grown by more than 25% in the past month, making it one of the best performers.
Investors wait for the spot XRP ETF
With XRP seeing positive performance and ETFs tied to XRP futures recording significant inflows and volume, market observers are waiting for the US Securities and Exchange Commission (SEC) to approve a spot product.
The performance of the futures products already represents a positive sign for many issuers planning to issue a spot XRP ETF, proving that there is a booming market for the products tied to the altcoin.
However, there is no clear news on what the SEC plans to do with XRP ETF applications. While the regulator is already addressing applications for Solana ETFs by asking issuers to amend and refile, it has yet to say anything about XRP ETFs.
Still, many believe the major stumbling block to any XRP ETF approval is the pending lawsuit between the SEC and Ripple. Both parties have shown their desire to settle with Ripple, recently dropping their cross-appeal against the SEC, setting the stage for a closure.
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