The debut of the US DOGE and XRP ETF is impressive: trading volume exceeded $24 million within hours of listing, sparking market frenzy.

Although analysts expect the debut of the first spot DOGE and XRP exchange-traded funds (ETFs) in the United States to perform modestly, traders' enthusiasm is high, driving their volume to soar. In the first few hours of Thursday's trading day, the volumes of both ETFs far exceeded expectations, reflecting not only investors' growing interest in a broader range of encryption assets but also highlighting the rapidly changing regulatory environment under the Trump administration and the new SEC chairman Paul Atkins, which is shifting in favor of industry development.

Volume Surge: DOGE and XRP ETF Debut Dazzles

In the first few hours of the launch of the first spot XRP ETF in the United States - REX-O(1)sprey XRP ETF (code: XRPR) - its volume has exceeded 24 million dollars.

Bloomberg Intelligence analyst Eric Balchunas commented on X: "This is much more than I expected. For reference, this is already five times the first-day trading volume of any XRP futures ETF, and it has only been 90 minutes."

REX-Osprey DOGE ETF (code: DOJE) has also exceeded initial expectations. Balchunas had previously set a first-day trading volume "benchmark" of $2.5 million, which he described as "quite substantial but not anything special." However, DOJE broke through $6 million within the first hour of listing. He wrote, "My estimates have been completely shattered. This is astonishingly good."

Regulatory Environment Shift: Trump Administration and New SEC Chairman's Support

The extraordinary performance of the two ETFs debuting for the first time is largely attributed to the rapid changes in the U.S. regulatory environment following President Trump's victory last year. After his election, he promised to clear obstacles for the encryption industry and pave the way.

Trump's victory also led to the resignation of cryptocurrency's long-time opponent Gary Gensler from his position as chairman of the U.S. Securities and Exchange Commission (SEC). Earlier this year, Washington insider and long-time cryptocurrency supporter Paul Atkins replaced Gensler and has established a new, more regulatory-friendly approach over the past few months.

Product Structure Interpretation: "Atypical" ETF under the 40th Amendment

These two striking ETFs made their debut, revealing the uniqueness of the products themselves. DOJE and XRPR are both constructed under the so-called "40 Act," which is a regulatory workaround that allows issuers to bypass the more stringent approval process of the SEC under the "1933 Securities Act."

The cost is that, compared to the heavyweight Bitcoin and Ethereum Spot ETFs approved by the SEC last year, these funds face stricter marketing restrictions and weaker distribution capabilities. Nevertheless, these funds are still required to directly hold the underlying tokens, but their prospectus allows for the supplementation of their exposure through overseas Spot ETFs and other financial instruments when necessary.

The successful listing on Thursday indicates that investors have a strong willingness to participate. DOGE – a parody coin that emerged in 2013 and was long derided as "useless" – is now packaged in institutional products and charges a 1.5% annual management fee, significantly higher than the mainstream Bitcoin ETF's fees of 0.2% to 0.4%. Balchunas commented last week: "I’m pretty sure this is the first American ETF ever to hold an asset that is intentionally useless." Meanwhile, XRP has also gained the highest-profile listing opportunity in the U.S. to date after years of regulatory battles with the SEC.

Looking Ahead: More Cryptocurrency ETFs Are Coming

Behind this market frenzy is the entire encryption currency market's expectation of more funds pouring in. The SEC is preparing a "universal listing standard," and if cryptocurrency ETFs meet the basic criteria, dozens of funds may be automatically approved. Bitwise Chief Investment Officer Matt Hougan recently stated that this change could "completely open up the market," signaling that DOGE and XRP are just the beginning of this wave of unconventional products.

Of course, not everyone is excited about these new ETFs. Bryan Armour, head of North American passive investment strategies at Morningstar, told the Financial Times in the UK: "I think this is dangerous. It has normalized collectibles. DOGE seems to be a fashion trend, just like Beanie Babies or baseball cards were back in the day."

Conclusion

The successful debut of DOGE and XRP ETF, despite its non-traditional product structure and high fees, conveys a clear signal: against the backdrop of a gradually clarifying regulatory environment, investors and institutions are expanding their interest in encryption assets from Bitcoin and Ethereum to a broader range of altcoins. This marks the beginning of a new chapter in the institutionalization of cryptocurrency, heralding an era of digital asset investment that is likely to be more diverse and potentially more volatile.